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Anonymous

29 Apr 2021

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SRS Early withdrawal penalty

If I retire early let's say at 50 years old, and due to some reason need to early withdraw fund from SRS $20k at 52. Is the penalty only 5%?
If my current tax relief is 15%, can I say that I still save nett 10% from the tax relief (after penalty, b4 investment gain/loss)?

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Ayush Singhal

29 Apr 2021

Hi! Yes, the math is right. If your only source of income between 50-62 is SRS, the you can withdraw up to 20K tax free. Post 62, you can withdraw up to 40K tax free given that’s your only ‘income’.

And yes you will have to pay 5% for penalty before 62.

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I understand that there will be a penalty but i want to withdraw SRS funds before retirement age. How do i "pay" the penalty and accrued taxes?

Is there any fall-below fee for the SRS account if I decide to open it with $1 just to lock the age of penalty-free withdrawal at 62yo?

Should we keep our SRS around 400k to minimize tax at withdrawal age? Is it possible to estimate how much I should put in SRS?

Hi seedly community, Ive been advised to start SRS early. May I know for SRS money, what are some Regular Savings Plans that you recommend I can put into?

I am a Malaysian PR and I am eligible to withdraw full amount of my CPF in either account when I decided to revoke my PR and retire early back in Malaysia. Should I transfer all my money into RA?

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