Full retirement sum trend

[OngHuatHuat]

You aware that the % is taxed on whatever you earned using srs upon withdrawal too?

That’s will be a happy problem. Haha.

Imagine the same 5% will be worth much less in many years to come. Take this as another consolation.

 

[foozgarden]

so what is the purpose of this thread?

end of the day, max SA to FRS and BHS also max as early as possible for interest to cover the following year limit.
every year max SRS, for tax relief. (400k? iirc to be tax free)

if you can achieve the above, i think you are in the 90th percentile of the population?

 

[SBC]

You aware that the % is taxed on whatever you earned using srs upon withdrawal too?

Yap, aware that SRS drawn down is added into one’s earned income.

DDA is now at 62. Likely to rise in years to come.

 

[OngHuatHuat]

Not many people able to do that.

so what is the purpose of this thread?

end of the day, max SA to FRS and BHS also max as early as possible for interest to cover the following year limit.
every year max SRS, for tax relief. (400k? iirc to be tax free)

if you can achieve the above, i think you are in the 90th percentile of the population?

 

[OngHuatHuat]

Even so your withdrawal will be subjected to income tax too.

Need to play the game well to be really benefit on this. Biggest risk will be if you are unemployed after you accumulate a substantial amount in SRS and you are in need of fund. If you lock 10 + % or 20 % in CPF or SRS still okay, if not, I rather pay the tax now.

Yap, aware that SRS drawn down is added into one’s earned income.

DDA is now at 62. Likely to rise in years to come.

 

[SBC]

Even so your withdrawal will be subjected to income tax too.

Need to play the game well to be really benefit on this. Biggest risk will be if you are unemployed after you accumulate a substantial amount in SRS and you are in need of fund. If you lock 10 + % or 20 % in CPF or SRS still okay, if not, I rather pay the tax now.

I see it as an insurance. If ever unemployed for > 4 months, should draw down some SRS. 5% penalty is manageable after so many years of returns.

 

[SBC]

Qns: say within the same year, drawn 10k and top up 8k.
Say income tax bracket is 7%.

Make sense?

 

[undiscern]

I see it as an insurance. If ever unemployed for > 4 months, should draw down some SRS. 5% penalty is manageable after so many years of returns.

Is a complete draw down, cannot partial, right?

 

[SBC]

Is a complete draw down, cannot partial, right?

I would read that partial is always allowed.
Just pay 5% as penalty b4 62.

 

[OngHuatHuat]

I think it is complete draw down also,
Perhaps sbc can check.

Is a complete draw down, cannot partial, right?

 

[JuniorLion]

Qns: say within the same year, drawn 10k and top up 8k.
Say income tax bracket is 7%.

Make sense?

Why would it make sense?

 

[OngHuatHuat]

I meant have to do it for 10 years?

I would read that partial is always allowed.
Just pay 5% as penalty b4 62.

 

[OngHuatHuat]

https://www.iras.gov.sg/irashome/In...etirement-Scheme--SRS-/Tax-on-SRS-withdrawal/

Found it, for early withdrawal, 100% of sum withdrawn will be subjected to highest income tax bracket and + 5% penalty.

 

[01asdf]

https://www.iras.gov.sg/irashome/In...etirement-Scheme--SRS-/Tax-on-SRS-withdrawal/

Found it, for early withdrawal, 100% of sum withdrawn will be subjected to highest income tax bracket and + 5% penalty.

Where do you get "highest tax bracket" from that?

 

[OngHuatHuat]

Where do you get "highest tax bracket" from that?

i meant highest tax bracket for each individual, not the highest tax bracket possible.


Coz that withdrawal will be added to your existing income, just like rental income, it will be taxed at the highest level.

 

[henrylbh]

I meant have to do it for 10 years?

You sure kena taxed withdrawing SRS after 62. You got rental from 4 properties, not counting income from work, if you still working. Right?

 

[01asdf]

i meant highest tax bracket for each individual, not the highest tax bracket possible.


Coz that withdrawal will be added to your existing income, just like rental income, it will be taxed at the highest level.

Yes but for a scenario like SBC posits where withdrawal is done because there is no other income, highest rate would still be minimal.

 

[OngHuatHuat]

Yes but for a scenario like SBC posits where withdrawal is done because there is no other income, highest rate would still be minimal.

yes, it is correct. First 20 k is not subjected to income tax.

 

[OngHuatHuat]

You sure kena taxed withdrawing SRS after 62. You got rental from 4 properties, not counting income from work, if you still working. Right?

3 of them are Malaysia properties, that part will be counted as Malaysia income.



Then for another condo, it is under my wife name actually.



So essentially, I can be counted as no income if I stop totally.

 

[SBC]

Why would it make sense?

Why not?
10k drawn down - kana 5% Tax
Topup 8k - to enjoy 7% tax rebate

Or just draw down 2k if I really need the 2k?