- Employers will be able to contribute directly to the SRS accounts of their employees, and get the full tax deduction on their contributions.
- Previously, members could only contribute until the statutory retirement age of 62. Now, the 10-year withdrawal period will only begin when they make their first penalty-free withdrawal. Effectively, the age limit for members to make SRS contributions have been removed.
- Individuals without earned income in the previous year will now be allowed to contribute to the SRS in the current year
For members who are aged 62 or above on 1 October 2008, there will be a one-off transitional concession for them to take advantage of the new rules. Those who have already started making penalty-free withdrawals or closed their accounts can still contribute to the SRS - as long as they do it between 1 October 2008 and 31 December 2008. However, point 2 still applies.
Note: Contributions to SRS will still be capped at $11,475 annually for Singaporeans and Permanent Residents, and $26,775 for foreigners.
No comments:
Post a Comment
Please bear with the word verification as I have been getting tons of spam comments daily.
You will see 2 sets of images for the word verification. Type the characters you see on the first image, followed by a space, and the characters you see on the second image.