FAQ for Taking Early PRS Pre-Retirement Withdrawals Without Tax Penalty
As outlined in the government’s Economic Stimulus Package, between 30 April 2020 until 31 December 2020 PRS pre-retirement withdrawals of up to RM1,500 (from Sub-Account B) per PRS provider are exempted from the 8% tax penalty.
We understand the need to support Malaysians during these challenging times. However, we want to caution our investors in using this pre-withdrawal option. As taking money out of your account during periods of market volatility can lead to loss of initial principal, as well as the opportunity for future growth and earnings.
To help you further understand what this means to you, we’ve prepared answers to commonly asked questions.
- There are no restrictions for members aged 55 years old and above to make withdrawals of any amount under any circumstances.
- No, there is no requirement for Members to make any disclosure on the reasons for the pre-retirement withdrawal.
- While this temporary exemption from payment of the tax penalty is provided in the short run, members are encouraged in the long run to continue to save for their retirement.
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.
If you have any further enquiries, please contact Principal at firstname.lastname@example.org or call 03-7718 3000. Alternatively, you may contact the Private Pension Administrator Malaysia at email@example.com or call 1300-131-772.
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