Have you ever wonder what you can do with your EPF? Is it only can take it out after you’re 60 years old? The answer is no. You can actually withdraw some portion of your EPF to so something.
7 Things That You Can Do With Your EPF
If you think that you can’t withdraw your EPF before your retirement age, then you’re wrong. You can actually withdraw it for these 7 usage.
1. Incapacitation Withdrawal
This is something that you don’t want to be the reason of withdrawal because this is only applicable to those who are mentally or physically incapable of working. Before you can get this, you need to have a specialist doctor, both from a private hospital or a public hospital to evaluate the person for incapacitation and prepare a medical report, which would be submitted with the application. The member must be unemployed to enable EPF withdrawal.
If you’re asking what is the withdrawal limit, it would be your entire EPF savings.
2. Education Withdrawal
For those who wants to further their studies, this is the best option that you can go ahead with the EPF. This withdrawal is offered to those who want to finance their higher level of education in accredited local or oversea universities, either for themselves or for their children. Additionally, this withdrawal can also be used to reduce/settle an existing study loan.
If you’re asking what is the withdrawal limit, it would be your tuition fees or whole Account 2 savings (Whichever is lower)
3. Pensionable Employees Withdrawal and Optional Retirement Withdrawal
This withdrawal is applicable to the EPF members who are still employed in the Public Service and are eligible to receive pensions are eligible for the Pensionable Employees Withdrawal.
Optional retirement withdrawal, on the other hand, allows EPF members who opt for early retirement from the Public Service to withdraw their contribution from EPF.
If you’re asking what is the withdrawal limit, it would be The employee’s share of the contributions, including the dividends accrued on the contributions, after returning the government’s share of contributions to Retirement Fund (Incorporated) (KWAP).
4. Members Investment Withdrawal
Under this scheme, members’ with savings that exceed their Account 1 basic savings amount by at least RM 5,000, are allowed to withdraw 20% from the excess savings to be invested through Ministry of Finance approved Fund Management Institutions (FMI). This table lists the benchmarked basic savings according to members’ ages.
If you’re asking what is the withdrawal limit, it would be The maximum withdrawal sum is calculated as follows: (Account 1 – Basic Savings) x 20%
5. Savings of More than RM1 Million Withdrawal
If you have savings more than RM1 million, then this withdrawal allows you as EPF members to withdraw their savings if their credit is at least RM1.05 million.
If you’re asking what is the withdrawal limit, it would be No less than RM50, 000 from Account 2. If insufficient, the balance will be taken from Account 1.
6. Health Withdrawal
This health withdrawal allows EPF members to withdraw their savings from Account 2 to pay for medical expenses incurred for the treatment of critical illnesses AND/OR to buy medical aid equipment, as approved by the EPF Board, for themselves or their allowed family members.
If you’re asking what is the withdrawal limit, it would be Cost actual medical cost or whole Account 2 savings. (Whichever is lower)
7. Hajj Withdrawal
You can fund their Hajj trip by withdraw savings from your Account 2 in order to . The amount, however, is capped and should only be used to supplement basic expenses; not the entire cost of the trip. This is so that the withdrawal would not undermine the members’ retirement savings.
In order to be eligible for the withdrawal, one or more of the following must be true:
- Members below 55 years old, who’ve received a letter with the ‘SELECTED’ status from Lembaga Tabung Haji (LTH);
- Members with insufficient savings in LTH.
If you’re asking what is the withdrawal limit, the allowed withdrawal sum is the lower of the two methods listed below:
- Members’ LTH Savings – Total Cost for Hajj < RM 3,000
- Account 2 balance
The total cost for Hajj, as prescribed by LTH, depends upon the different years. For example, for current first time pilgrims, Hajj fees are RM 9,980. Note that, this cost is subsidized (RM 6,175) by LTH for first time pilgrims. This subsidy is not offered to those who have already performed Hajj before.
These are only the few options and there are numerous options for EPF/KWSP withdrawals that you can use it for. But before you really withdraw it, you really need to weigh the pros and cons of taking money out of your EPF accounts.