SRS withdrawal age

[crimsontactics]

Tax relief for NS man is given as long as the person lives.

Just curious, for the Earned Income Relief, as long as I earn $1 from employment, I'm entitled to it right?

Because at 60 and above, we get $8,000 deduction, which mean we can withdraw another $16,000 out of SRS each year.

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[henrylbh]

Just curious, for the Earned Income Relief, as long as I earn $1 from employment, I'm entitled to it right?

Because at 60 and above, we get $8,000 deduction, which mean we can withdraw another $16,000 out of SRS each year.

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You can only dream to claim more than what you earn

 

[crimsontactics]

You can only dream to claim more than what you earn

What do you mean? So how does earned income relief work?

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[BBCWatcher]

So how does earned income relief work?

IRAS explains it here.

The Earned Income Relief only applies to earned income, just as its name suggests. If you have $1 of earned income, then you get $1 of Earned Income Relief. The maximum Earned Income Relief varies with age, but the relief only applies to qualifying income. If your qualifying income is below the maximum, then you don’t get the maximum.

 

[crimsontactics]

IRAS explains it here.

The Earned Income Relief only applies to earned income, just as its name suggests. If you have $1 of earned income, then you get $1 of Earned Income Relief. The maximum Earned Income Relief varies with age, but the relief only applies to qualifying income. If your qualifying income is below the maximum, then you don’t get the maximum.

I see. Thank you for your explanation.

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[henrylbh]

What do you mean? So how does earned income relief work?

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EIR is given according to age at $X "or amount of earned income"

Can refer S39 of ITA.

 

[sgdividends]

Tax relief for NS man is given as long as the person lives.

Is it? I thought it's only given for the NS service done in the previous work year?

Once a soldier goes into mindef reserve (MR) and not called back for the reservist training , he should not have any NS tax relief already .

 

[crimsontactics]

Is it? I thought it's only given for the NS service done in the previous work year?

Once a soldier goes into mindef reserve (MR) and not called back for the reservist training , he should not have any NS tax relief already .

Nope.

It's given as long as you live.

Minimum of $1,500 a year, maximum of $5,000 a year.

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[henrylbh]

Nope.

It's given as long as you live.

Minimum of $1,500 a year, maximum of $5,000 a year.

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Give also no use if one has no more chargeable income. Better they give cash vouchers (even 10% of the relief is good enough) so retirees with no income can still benefit.

 

[htc_user]

Best way is to pump 15300 per year and then use it to buy annuity

Assuming someone invest max in SRS every year for around 30 years. At age 62 assuming returns of around 3%, that person has 800K. So strategy could be to buy a life annuity that pays $40K per year till death to avoid any tax assuming no other taxable income at 62.