7 Types Of EPF Withdrawals You Should Know

Do you think EPF is a savings account meant to be helpful after retirement? Actually, it is not. You can use the money saved in your EPF account for many other purposes as per government guidelines. You can withdraw the money from your EPF account by mentioning the purpose of its use. If your purpose is acceptable, then your request will be granted. However, there may be restrictions on the amount you can withdraw based on the purpose mentioned.

1. Incapacitation Withdrawal:

    Purpose: If you suffer a physical or mental disability, you can withdraw the complete balance in your EPF accounts. This is possible when you reach the Maximum Medical Improvement (MMI).

    Withdrawal Amount: The entire balance in your EPF account.

    Terms and Conditions:

    • You can be a Malaysian or a permanent resident of Malaysia.
    • Your age must be below 60 years at the time of application submission.
    • You must have a savings account with EPF.
    • You must not be employed while submitting the application.
    • The application must be supported by a doctor’s report that is signed not before six months.
    • An interview will be held where you have to meet the EPF officers. Also, an examination will be held by the EPF Medical Board to verify your health condition.

2. Education Withdrawal

    Purpose: You can use the savings in your Account 2 to fund your education or that of your children’s. Stepchildren or legally adopted children can also get the benefit. This facility is available for higher education carried out locally or in foreign countries.

    Withdrawal Amount: (not mentioned)

    Terms and Conditions:

    • You can be a Malaysian or non-Malaysian.
    • Your age must not have reached 55 years.
    • You must have savings in your Account 2.
    • You or your children must be registered to take up an academic/professional/vocational/skill-based course in an authorised institution.
    • The course can be any diploma, advanced diploma, bachelor’s degree, master’s degree or doctor of philosophy.
    • Withdrawal can be done to fulfil the tuition fees or to pay off the educational loan.
    • The categories of education accepted are:
      • Higher education institutes in Malaysia—full-time, part-time, overseas and franchise programmes.
      • Overseas higher education institutions—full-time programmes.
    • Tuition fees include all the charges imposed by the educational institute, hostel/accommodation expenses and one-way flight ticket when you or your children register for the first-year of the course.
    • Withdrawal can be made every semester or every year.

3. Death Withdrawal

    Purpose: On your demise, your savings in EPF will be distributed to your legal nominee.

    Withdrawal With Nominee: Nominee can be the applicant for withdrawal.

    Withdrawal Without Nominee: The processing of withdrawal will be made based on Letter of Administration. The rightful next-of-kin will be paid with the EPF savings.

    • Savings Up to RM2,500: The entire amount will be paid.
    • Savings above RM2,500 and less than RM25,000:
      • If the withdrawal application is submitted within two months from your death, your next-of-kin will receive RM2,500 as the first instalment and the rest of the EPF savings will be paid after 2 months from the date of death.
      • If the withdrawal application is submitted after two months from your death, the entire balance of your EPF savings will be paid to your next-of-kin.
    • Savings higher than RM25,000:
      • If the withdrawal application is submitted within two months from the date of your death, your next-of-kin will receive RM2,500 as the first instalment. The second instalment of not more than RM22,500 will be paid after two months from the date of your death. The remaining balance will be paid based on Letter of Administration.
      • If the withdrawal form is submitted after two months from the date of your death, your next-of-kin will be paid a sum of RM25,000. The remaining balance will be paid based on Letter of Administration.

    Terms and Conditions:

    • The death benefit of RM2,500 will be paid once.
    • You can be a Malaysian or a non-Malaysian.
    • The death benefit can be claimed if you die before reaching an age of 60 years.
    • The application will be entertained only if there are savings in your EPF account.

4. Health Withdrawal

    Purpose: You are allowed to withdraw the savings from your Account 2 to bear the medical expenses to cure your or your family member’s critical illnesses. You can also withdraw to buy a select medical equipment approved by the EPF Board.

    Withdrawal Amount:

    • The savings in your Account 2 or the amount equivalent to the medical cost, whichever is lower.
    • If your employer pays a part of the medical cost, only the remaining medical cost can be withdrawn from EPF, subject to the available balance in your Account 2.
    • Joint application: You can withdraw an amount that is the lowest among the following and is subject to the medical cost:
      • The applied amount.
      • The savings available in your Account 2.
      • The remaining treatment cost after deducting the withdrawn amount of other applicants.

    Terms and Conditions:

    • You member can be a Malaysian or non-Malaysian.
    • Your age must be less than 55 years while submitting the application.
    • You must have balance in your Account 2.
    • EPF Board has specified a list of 90 critical illnesses and the medical equipment that are covered under this policy.
    • Some critical illnesses covered are:
      • Congenital Heart Disease.
      • Peripheral Vascular Disease.
      • Alzheimer’s Disease.
      • Paralysis.
      • Glaucoma Requiring Surgery With Glaucoma Implant.
      • Renal Calculi Requiring Surgical Intervention.
      • Lung Fibrosis.
    • Some medical equipment covered are:
      • Nebulizer.
      • Home Oxygen Therapy.
      • Cochlear Implants.
      • Bone Anchored Hearing Aids.
      • Permanent Pacemaker.
      • Intra-Aortic Balloon Pump.
      • Radiographic Contrast.
    • You can use the policy to cover the medical expenses of your spouse, children/step-children/adopted children, parents/parents-in-law/step-parents/foster parents and siblings.
    • Submit the medical reports and bills that are not older than a year along with the withdrawal application.
    • Joint withdrawal can be done with family members.

5. Hajj Withdrawal

    Purpose: You can withdraw the amount in your Account 2 to go to Hajj. The purpose of this type of withdrawal is to support the expenses incurred in performing Hajj and not to completely sponsor it.

    Withdrawal Amount: The difference between the total cost for Hajj and the total savings in your LTH account capped at RM3,000 or the balance in your Account 2, whichever is lower.

    Terms and Conditions:

    • Your age must be less than 55 years and you must have received a letter from Lembaga Tabung Haji (LTH) with the status ‘Selected’.
    • You can apply for Hajj Withdrawal only once even if you perform Hajj multiple times.
    • You can withdraw if you have insufficient balance in LTH.
    • The money from EPF account will be transferred to your LTH account.
    • If you withdraw the EPF money and then if you cancel/withdraw to perform Hajj, you have to repay the amount withdrawn.

6. Leaving Country Withdrawal:

    Purpose: This withdrawal is applicable in a case where you are a Malaysian and migrating to another country leaving behind the citizenship of Malaysia. In case of non-Malaysians, you can withdraw the EPF contribution if you are leaving the country in order to return to your home country.

    Withdrawal Amount: The whole balance in your EPF account.

    Terms and Conditions:

    • Malaysians: You have to renounce your Malaysian or permanent resident of Malaysia status.
    • Foreigners/Expatriates:
      • Submit the employment termination letter, work permit termination letter and income tax relief statement.
      • Submit the cancellation letter of your Residence Pass.
      • Apply for the withdrawal 2 months’ prior to the expiry of your work permit.

7. Withdrawal of Savings More Than RM1 Million

    Purpose: If the savings in EPF account exceeds RM1.05 million, then you can withdraw the excess amount and use it for your management.

    Withdrawal Amount: You can withdraw not less than RM50,000 from your Account 2. If Account 2 has insufficient funds, then savings from Account 1 can be withdrawn.

    Terms and Conditions:

    • You can be a Malaysian citizen or a non-Malaysian.
    • Your age must not have reached 55 years.
    • Your EPF savings must not be less than RM1.05 million.
    • Withdrawal can be made once every quarter of the year.
    • Submit an application each time you have to withdraw.

The EPF Board offers a variety of cases where you can withdraw from your EPF savings and reduce the stress in your life. In addition to the ones mentioned above, you can withdraw EPF to pay your housing loan instalments or even buy a house. So, educate yourself with all the facilities that EPF offers so it could be helpful in some emergency situations.

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