Tuesday, 18 September 2018
Unlocking SRS At 62 And Avoiding Being Taxed (2)
Read? Unlocking SRS At 62 And Avoiding Being Taxed
To transfer money from Saving to SRS is so easy by click of button using internet banking; but to transfer money from SRS to Saving after 62 has to fill up form and wait for official approval and backend processing. Let see how long it will take to transfer back from SRS to Saving account.
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Yup, I wouod like to.know too.
ReplyDeleteCw, I thoughy the non penalty amount is 40k?
You have to tick the row indicating Penalty "You are 62 and above. No penalty" or "Below 62. Penalty"
Deleteand another row on 50% of amount withdrawal is tax applicable. You have to tick off that means you have read and understand! No fine print. LOL!
Hi Sillyinvestor,
DeleteTo ensure no income tax, you need to ensure your total income is <= $20K.
So if you got rental income or do some recorded (or declared) part-time / temp work, AND you withdraw $40K from SRS then still need to pay some income tax.
But ok lah, unless your rental and/or pt work is damn tok kong har har!!
SRS withdrawal money is in Saving account. One working day. Credited last night. 18 Sep 18. Same date as application date.
ReplyDeleteFor high income tax payers
ReplyDeleteHi Temperament,
ReplyDeleteRefer to IRAS income tax rates.
SRS makes a lot of sense when chargeable income goes into 11.5% & higher brackets.
In fact quite a number of people start using SRS when their CI goes above $50K (i.e. 7% bracket). Of course need to ensure liquidity & outlays are covered first.
A CI of $50K indicates a yearly income of $62.5K, assuming no other tax deductibles other than the compulsory CPF contribution.