SRS Account?

[HydroPoP]

What are your views on opening a SRS account? 31 Dec coming soon, I'm thinking of opening one and put money inside to reduce my income tax next year... :dunno::think:

http://www.mof.gov.sg/taxation/srs.html

 

[auron]

another tactics by our p8p gahmen to lock out your $$$ till old age...
put in cannot take out...

with the current economic condition, would rather have liquid cash.

just like ppl who says, i have a few hundred k in the CPF account, but it cannot be touched and i'm forced to declare bankrupt.

 

[code]

another tactics by our p8p gahmen to lock out your $$$ till old age...
put in cannot take out...

with the current economic condition, would rather have liquid cash.

just like ppl who says, i have a few hundred k in the CPF account, but it cannot be touched and i'm forced to declare bankrupt.

Not true. You can withdraw from your SRS account anytime except you would have to pay tax on the withdrawn amountl (tax you would have deferred when you contributed to the account).

Whether one contributes to SRS depends on the tax savings he will get (which in turn depends on his tax bracket) vs the loss in liquidity.

 

[HydroPoP]

Thanks,

anyway I've opened a SRS account with OCBC and invested the money as well, as of now in the cash funds. Wondering what funds to put into, most of them now have very low prices of below 1 index point. :dunno::think:

 

[pisduck]

Not true. You can withdraw from your SRS account anytime except you would have to pay tax on the withdrawn amountl (tax you would have deferred when you contributed to the account).

Whether one contributes to SRS depends on the tax savings he will get (which in turn depends on his tax bracket) vs the loss in liquidity.

there is a 5% penalty. So the tax savings u get for defering must be more than 5%, else not worth it.

 

[anthony.phua]

Just to add on. If you withdraw the funds from the SRS account in the SAME YEAR that you put in the funds, there is NO penalty (info is correct as of today).

there is a 5% penalty. So the tax savings u get for defering must be more than 5%, else not worth it.