Ask the Readers: Withdraw or Transfer Your EPF Corpus?

by Vinaya HS on September 27, 2010

in Finance

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Thought I’d ask this question that many of us face when changing jobs. The choice becomes all the more difficult especially when you know that your EPF corpus is a significant amount.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 6 comments… read them below or add one }

Jagbir September 27, 2010 at 9:53 AM

EPF seems best debt instrument for me so I’d definitely opt for transferring it. Its in EEE regime and Icing on the cake is the news that they will pay 9.5 for next financial year.

Vinaya HS September 27, 2010 at 2:53 PM

Yeah. But as outlined in this article, the source of that extra money looks dubious. Plus, I recollect reading in a leading business publication (Outlook Business?) how mismanaged and opaque the EPFO really is.

Sandriano September 28, 2010 at 11:31 PM

Hi Vinaya,

But then Government is the guarantor for EPFO. So, I reckon it is quite safe.
Coming back to your question, never never opt out of EPF and transfer it elsewhere. It is one of retirement funds and let it be that way. And another caveat is that if the amonut is withdrawn before 5 years, then it will be taxed.

Regards,
Sandriano

Vinaya HS September 29, 2010 at 2:57 PM

The votes are overwhelmingly in favor of transferring your EPF corpus over to your new job. But personally, I’d opt to encash and invest elsewhere, at least until there is greater transparency — say an annual account statement that’s dispatched to your mailing address.

BTW, have you ever received/seen an account statement for your EPF?

Vinay September 29, 2010 at 10:12 PM

Yes. My company provides us this small strip annually!

Vinaya H S September 30, 2010 at 9:54 AM

@Vinay:

Lucky you! In 8 years of professional work, I haven’t seen one. My wife’s workplace, however, recently issued the small strip for FY 2006 – 07. Does your company have it’s own registered trust or do you come directly under the EPFO?

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