Based on the EPF retirement plan, money accumulated in an EPF savings account II can only be withdrawn when members reach 50 years old, and they may allow to withdraw only 30% of their EPF, members who are 55 years old or older may withdraw all of their EPF.
EPF Account II Withdrawal at Age 50 Years
EPF allows you to make one shot withdrawal at the age of 50 years. In the other words, you are allowed to withdraw all your savings in Account II in order to help you prepare for your earlier retirement.
There is no restriction on how your money going to use. But, it is advisable that you use the money wisely and do not spend the money away, else you may not be able to achieve the kind of retirement life that you wished for.
Applications to withdraw can be submitted 6 months before reaching age 50 years. And, payment will only be processed after you reached 50.
Eligibility for Withdrawal:
You can withdraw your savings in EPF account II to finance the purchase of a house. If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house or the balance available in Account II, whichever is lower.
If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house or the balance available in Account II, whichever is lower.
Example 1 (Individual Purchase)
Michael Lim purchased a house RM100k and obtained a housing loan of RM70k. His total EPF savings in Account II is RM55k. Thus, the amount of savings that he can withdraw is:
Price of The House
RM 100k
Housing Loan
RM 70k
Difference Between Price of the House & Housing Loan
RM 30k
Additional 10% of the Price of The House (100k x 10%)
RM 10k
Maximum Amount Eligible For Withdrawal
RM 40k
Balance Available in Account II
RM 55k
The Amount that Can Be Withdrawn
RM 40k
Since the maximum amount he is eligible to withdraw is lower than his total savings in Account II, Michael Lim can withdraw RM40k only.
Example 2 (Individual Purchase By Cash)
Lau Sai Kia purchased a house RM155k. He did not take any housing loan to finance the purchase. He has paid RM55k to the developer. His total savings in Account II is RM80k.
Price of The House
RM 155k
Housing Loan
NIL
Difference Between The Price of The House & Housing Loan
RM 155k
Additional 10% of the Price of The House
RM 15.5k
Maximum Amount Eligible For Withdrawal
RM 170.5k
Balance Available in Account II
RM 80k
The Amount That Can Be Withdrawn
RM 80k
Since Lau Sai Kia has RM80k only in his Account II, he can withdraw all of his savings in Account II.
Hi.
From the example 1, I can understand that Michael Lim has a housing loan to cover his debts.
Nonetheless, in example 2, Lau has paid RM55k, withdraw RM80k, that only make up a total of RM135k. but the house is RM155k!! So does this means Lau still owe the developer RM20k?
hii,
how long the process to withdraw acc.2?
i want to built the house.How can i withdraw from acc.2
my housing loan is RM170K , epf a/c 2 rm70k, how much i can withdraw?