Hi , I have two questions related to EPF There is some news that EPF can be withdrawn in full till apr30. Is there any notification on this? Is it a good idea to avail this option now if the criteria are met? When planning Asset-Allocation how do we accommodate EPF into the calculations? I believe it would go into debt portion but how do we track the Invested/Current Value? Thanks in advance for any suggestions for these queries.
First point to be noted is, if you are in job then you can’t withdraw EPF at any point of time. Second thing, the 30th April, 2016 deadline is for those who applying for withdrawal and no more in job. If they submit the withdrawal application before this date, then they are allowed to withdraw the full amount like Employee contribution+Interest on that+Employer Contribution+Interest on that+EPS (as per Table D). If you apply for withdrawal after 30th April, 2016, then you are allowed to withdraw only your contribution and interest on that. Rest of amount will be eligible for withdrawal once you attain the age of 58 years. Yes, you have to consider EPS as debt product for your retirement goal. Regarding valuations, you can check the passbook online.
Thanks. I am out of my job so is it a good idea to withdraw the total amount and invest elsewhere? What I am gaining or losing if not withdrawing before end of this month? Basically trying to understand whether to withdraw or not.
It is better. Because the new rule actually harm those who quitting job and doing their own at their early age. However, if plan to join new company after few months, then it is best not to withdraw.