I just called up PPA minutes ago, the CS agent confirmed with me that withdrawal has no effect on your contribution for tax purposes. Meaning even you withdraw RM1500, provided in this year you contribute, you can still claim the tax deduction based on your current year's contribution.

my contribution was solely to benefit on the tax deduction as some said. my current scenario;

PRS A (acct B) RM 2000

PRS B (acct B) RM 800+(new, from August 2019)

Planning to top up RM2400, to make up to RM1500 in PRS B so that i can withdraw comes August 2020
Withdraw from PRS A comes May
Top up RM600 by year ends to make up my total contribution of RM3000 for tax purposes for YA20

just so you may want to consider. does it mean 1 year from last topup or 1 year from 1st topup?

Note:
One of the prevailing terms and conditions for pre-retirement withdrawal from sub-account B is still applicable, whereby such withdrawals may only be made from a PRS fund one year after enrolment.

https://www.ppa.my/wp-content/uploads/2020/...Penalty-new.pdf

This post has been edited by !@#$%^: Apr 29 2020, 11:50 AM

its one year from 1st top up. subsequent tops up no restriction

cool

I just learned bout PRS

thanks for the updates...

then that means, withdraw RM1500, then use that withdrawn money of RM1500 to contribute back to PRS....get tax relief or RM1500 (for free)
all the gain with nothing to lose but some 'spending time" only...

You are forgetting if you withdraw at a loss = a loss.

Already debated about this few pages back.
Already "gained" from tax relief.

This post has been edited by GrumpyNooby: Apr 29 2020, 04:50 PM

that's y wait for market to improve before withdrawing, still have few months.

out of 3 funds, mine only 1 positive 5 percent, thr other 2 at negative 9 and 13%.

those withdraw now could be from Conservative PRS fund,....intending to buy into EQ PRS funds.....

well anyway, how you know now is not the good time or now is a good time?
the price could be stagnant, up or fall after you sold and buy again (to get the FREE tax relief gain as posted above)

withdraw now and buy again....
if buy again, at a higher price.....you lose if the price paid is higher than the tax relief gain
if buy again, at a lower price.... you gain the lower priced units PLUS the gain of tax relief.
if buy again at the same price as you sold earlier...you will still gain the tax relief.

It will be interesting to see how many will still contribute to PRS post 2020 (I believe it is the last year for relief, barring any extensions, or corrections - in case I am mistaken).

I for one, will not as the main purpose is to gain from tax savings. The moment this no longer exists, there will be no significant incentive to even consider this medium.

Their returns (in my case) have been super pathetic and I have tried all permutations - aggressive, moderate, conservative. All super koyak - putting the money in FD even at 3% per year is better. And I have been investing since 2012.

However, I will take advantage of the RM 1,500 and then retop up another RM 1,500 for the final time this year.

This post has been edited by saintmikal: Apr 29 2020, 06:20 PM

The tax relief is up to 2021 which is next year.
Similarly to SSPN tax relief, I'm seeing this tax relief will get an extension.

Can I top up 3k into PRS, and then withdraw all from account B during the same year? Am I still entitled for the tax relief of 3k?

Isn't there answer few posts above if you did scroll up?

This post has been edited by GrumpyNooby: Apr 29 2020, 07:51 PM

I see, I have one existing PRS fund with FSM.

So I should top up to that fund right? If I top up to new fund I won’t Be able to withdraw this year.

One of the prevailing terms and conditions for pre-retirement withdrawal from sub-account B is still applicable, whereby such withdrawals may only be made from a PRS fund one year after enrolment.

The prevailing requirement is very clearly stated.

If you're aiming for withdrawal, you should top up existing funds.

It looks like PPA is managing this per PRS provider (FM) basis.

This post has been edited by GrumpyNooby: Apr 29 2020, 08:24 PM

Ok noted, seems like a loophole to get free tax relief

I hate the paperworks!

Why can't PPA come out with an app like EPF and embrace digitalization like EPF iInvest?

Market haven't recovered to last all time high.

I will. Cause tax relief is until 2021. 2021 is last year to buy. If they don't extend I won't buy anymore. Simple as that. Either way I win. If they don't extend, I can shift the extra RM3k overseas.

It appears that PRS seems to have missed its intended purpose. Retirement savings? I think many people here only use it to save tax, nothing more. The moment the government removes this tongkat, what will happen to it?

I just pray that I don't lose when I can finally withdraw. At least EPF is guaranteed 2.5% per annum (and most of the time outperforms the minimum and FD!). Why can't PRS since it is suppose to act exactly the same as EPF?