Old rule – Workers only can top up their own accounts.
New rule – From Oct 1, 2008, employers can top up the SRS accounts for their employees and enjoy tax exemptions.
So if you know that an employee of yours is going to contribute to SRS, why don’t the company do it on behalf of the employee?
Old rule – Currently, members are given 10 years to withdraw their SRS savings from the retirement age of 62.
New rule – It will start only when a SRS member makes his or her first withdrawal.
- 50% of the amount taken out of SRS account during that 10-year period is taxable.
- Top-ups will still be capped at $11,475 for Singaporeans and PRs and; $26,775 for foreigners.