EPF stands for Employees Provident Fund. It is a mandatory savings scheme in Malaysia that provides retirement benefits to all members of the program. Under this scheme, members can withdraw their savings under certain circumstances, such as for education, medical expenses, and education.
The Malaysian government, in response to the COVID-19 pandemic, has made it possible for the members to withdraw up to RM10,000 from their accounts within a limited period. Keep reading to learn everything about EPF withdrawal 10k in Malaysia.
Eligibility for EPF Withdrawal 10k
To be eligible for the program, members must meet the following criteria to be able to withdraw up to RM10,000 from their account 1:
- Members must reach the age of 55
- Members who have lost their jobs or whose source of income has been affected due to the COVID-19 pandemic
- Members of the EPF program who have reached the age of 55 can withdraw up to 10 % of their savings in Account 1 or a maximum of 10k.
- Also, members who also lost their jobs or whose source of income has been affected by the pandemic can also withdraw up to 10% or 10k in their Account 1.
How to Apply for EPF Withdrawal 10k
- Members are to apply for the EPF withdrawal program through the i-Lestari online application on the EPF official website. Here are the steps to apply for the EPF withdrawal program in Malaysia:
- Log in to the official website and fill the form through the i-Lestari online application form on the EPF i-Akuan
- Provide your personal details including bank account number, personal details, and the amount of money you wish to withdraw
- Confirm your application
After applying, wait for your application to be processed. In most cases, your application will be processed within three business days and the money will be credited to your bank account.
EPF Withdrawal 10k Tax Implications
Take note that the EPF withdrawal is subjected to tax. The amount of money withdrawn will be included in your taxable income for the year and will be taxed based on their income tax bracket. Therefore, it is recommended you contact a tax professional to understand how the tax implications of EPF 10k withdrawal works.
EPF Withdrawal 10k Impact on Retirement Savings
The unpleasant news about EPF withdrawals is that it has a negative impact on your retirement savings. Tis is because every withdrawal you make reduces the amount you have saved for your retirement.
Therefore, it is advised not to be withdrawing your EPF unless you have got yourself in a difficult or emergency situation such as medical bills.
Read also: EPF Withdrawal for Personal Use
FAQs
Here are some of the most popular questions about EPF withdrawal 10k program in Malaysia:
Will daily withdrawal has impact on my retirement savings?
Yes, it would have a negative impact on your retirement savings since it reduces the amount of money you have saved for your retirement.
Can I apply for EPF withdrawal if I have not met the requirements?
No, you cannot apply for the program unless you meet one of the requirements listed above.
Conclusion
We hope that you have clearly understood what EPF withdrawal 10k is all about, including eligibility requirements, and how to apply for the program. The program aims to provide financial assistance to members who have have had their jobs lost or who have been negatively impacted by the COVID-19 pandemic.
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