When you withdraw from your SA at age 55, do you have to pay income tax on it? - Seedly
Seedly logo
Seedly logo
 

CPF SA

CPF

Supplementary Retirement Scheme (SRS)

Income Tax

Retirement

Anonymous

Asked 2w ago

When you withdraw from your SA at age 55, do you have to pay income tax on it?

This is because I know that if you withdraw from SRS, you have to pay income tax, so I was wondering if this was the same for SA.

0 comments

1 answer

Answer Now

Answers (1)

Sort By

No, there is no tax on withdrawal for Special Account.

I share quality content on estate planning and financial planning here.

2 comments

ūüĎć 0
Question Poster

2w ago

In that case, why would anyone choose SRS over SA? Since not only does SRS miss out on the 4% interest, the money will eventually be taxed too (albeit at a much lower amt and possibly not taxed)
Pang Zhe Liang
Pang Zhe Liang

2w ago

They are different channels for different purposes. For example, you may have reached the maximum contribution for Special Account. In another case, SRS maintains certain level of liquidity while monies in your Special Account is locked in for the long-term.