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.
[polldaddy poll=3823702]
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.
[polldaddy poll=3823702]
6 thoughts on “Ask the Readers: Withdraw or Transfer Your EPF Corpus?”
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.
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.
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 And another caveat is that if the amonut is withdrawn before 5 years, then it will be taxed.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
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?
Yes. My company provides us this small strip annually!
@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?