I'm Baburam Choudhary. I joined in September 2012 and will be leaving in November 2014 from a company. Now, I want to withdraw my PF from the old account. Can I withdraw the full amount with all (my employee contribution + employer contribution + pension contribution) in my bank account? Alternatively, can I transfer everything (employee contribution + employer contribution + pension contribution) to my present PF account? Which option is better for me without any losses? Kindly suggest.
From India, Ahmedabad
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1From India, Ahmedabad
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To make an informed decision between withdrawing or transferring your PF, consider the following:
1. Withdrawing PF:
- You can withdraw the full amount from your old PF account, including employee, employer, and pension contributions.
- The withdrawal is subject to tax implications, especially if withdrawn before completing 5 years of continuous service.
- Immediate access to funds but potential tax deductions and loss of long-term savings benefits.
2. Transferring PF:
- Transferring the PF to your present account is advisable to retain tax benefits and continue saving for retirement.
- No tax implications when transferring to a new PF account.
- Helps in consolidating your PF accounts and tracking retirement savings efficiently.
Recommendation:
- If you have a stable job and wish to continue saving for retirement, transferring the PF is a better option.
- For short-term financial needs or if you don't plan to work continuously for 5 years, withdrawing may be suitable.
- Consult with your HR department or a financial advisor for personalized guidance based on your specific circumstances.
From India, Gurugram
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1. Withdrawing PF:
- You can withdraw the full amount from your old PF account, including employee, employer, and pension contributions.
- The withdrawal is subject to tax implications, especially if withdrawn before completing 5 years of continuous service.
- Immediate access to funds but potential tax deductions and loss of long-term savings benefits.
2. Transferring PF:
- Transferring the PF to your present account is advisable to retain tax benefits and continue saving for retirement.
- No tax implications when transferring to a new PF account.
- Helps in consolidating your PF accounts and tracking retirement savings efficiently.
Recommendation:
- If you have a stable job and wish to continue saving for retirement, transferring the PF is a better option.
- For short-term financial needs or if you don't plan to work continuously for 5 years, withdrawing may be suitable.
- Consult with your HR department or a financial advisor for personalized guidance based on your specific circumstances.
From India, Gurugram
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