Moving Jobs: Should I Transfer or Withdraw My PF? Pros and Cons Explored

Hi HRs,

Please advise whether it is better to transfer PF or to withdraw? What are all the positives and negatives for both? I am currently in TN and moving to Karnataka for the next job.

Regards,
Ravi

Hi,

As PF is a long-term benefit, you should not withdraw the amount. Instead, by filling out FORM 13, you can transfer the amount to your current account.

Katyana

Hi,

It's better to transfer PF to another company and let it accumulate for 5 years. After 5 years, you can withdraw your PF so that there will be no tax deduction on it.

Please transfer the PF accumulations from your previous employer's account.

Benefits:
1. You will have funds for your future (definitely a savings without our knowledge).
2. Pension availability in your old age - which is definitely an indirect investment.
3. You are on the benefit side to draw in your needy time in the form of advances under sec. 68 - which needs years of service and fund.

Disadvantage:
1. It will not be available fully at the time of your requirement - if your present requirement is important.

ADVISED TO TRANSFER BY FORM 13 BY HAVING A COPY WITH YOU.

Thanks,
P. RAMACHANDRAN

Hi,

Don't withdraw your PF amount. Please transfer your PF amount through Form 16 to your new company. The time value of money is important. In the future, this PF amount will be more useful to you. You will receive the employer's contribution towards PF, and the interest will depend on the time period.

WISH YOU ALL SUCCESS.

Thanks,
GopalaKrishna Murthy B.