28 October 2019

[PRS] Zero Tax Penalty for Housing and Healthcare Withdrawals

Following the recent Budget 2020 announcement that PRS members are allowed to make pre-retirement withdrawals for purposes of healthcare and housing without any tax penalty. (instead of the normal 8% tax penalty, click here to know in details)

For Immediate Family.

“PPA is grateful to the Government for the introduction of 0% tax penalty for pre-retirement withdrawals of PRS from sub-account B, which holds 30% of the savings for purposes of healthcare and housing. This move reflects the Government’s understanding and commitment to help all Malaysians use a portion of their retirement savings for their needs. With this proposal, which shall take effect from next year, we are positive that more Malaysians will come forward to save more for their retirements through PRS,” said Husaini Hussin, Chief Executive Officer of PPA.

“In recognition by the Government of rising healthcare cost, withdrawal for immediate family members are also allowed” added Husaini.

Husaini Hussin, Chief Executive Officer of PPA

To recap, all PRS members upon reaching the Retirement age of 55 years old or who suffer from Permanent Total Disablement, Serious Disease or Mental Disability can withdraw the FULL SUM of their PRS savings without any tax penalty.

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Articles on PRS which you might be interested in:
[PRS Nomination] What should I take note?https://financemalaysia.blogspot.com/2017/08/prs-nomination-what-should-i-take-note.html

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