- If you withdraw funds from your SRS account before retirement, you can still continue to contribute to SRS after the withdrawal. However, you may no longer contribute to SRS if you start withdrawing from your SRS account: (i) at or after the statutory retirement age that was prevailing when you made your first SRS contribution, or; (ii) on medical grounds.
Is there an age limit for contributions to the SRS?
With effect from 1 October 2008, there will no longer be an age ceiling for contributions to the SRS. You will be able to contribute to the SRS up to any age, until the point where you make the first withdrawal from the SRS:
(i) at or after the prevailing statutory retirement age that was prevailing when you made your first SRS contribution, or;
(ii) on medical grounds.
The date on which SRS participants withdraw their SRS savings is also the date new contributions will stop. Otherwise, there will be ''round-tripping'' simply for the purpose of gaining the tax benefits without subjecting the contributions to the investment risks which justify the 50% tax concession on sums withdrawn.
Under what situations am I not be allowed to contribute to my SRS account?
You may no longer contribute to SRS after you start withdrawing from your SRS account:
(i) at or after the prevailing statutory retirement age that was prevailing when you made your first SRS contribution, or;
(ii) on medical grounds.
After the SRS operator has computed my SRS contribution cap for the year, is it mandatory for me to make a contribution up to the cap set?
You can contribute any amount up to your SRS contribution cap.Can I make SRS contributions in the form of investments (i.e. transfer investments into my SRS account)?
No. All SRS contributions must be made in cash.Do I need to contribute regularly to SRS?
No. You may contribute to SRS at any time and as often as you wish on or before 31 December each year* but your total annual contributions cannot exceed the SRS contribution cap. (* Only applicable if you are still able to contribute to the SRS.)What is the amount I can contribute to SRS? Is there a limit, and if so, how is this limit determined?
You may contribute any amount to your SRS account up to your SRS contribution cap.
Your SRS contribution cap is determined by multiplying the appropriate SRS contribution rate by an absolute income base.
SRS contribution rate
The SRS contribution rate for Singaporeans and Singapore Permanent Residents (SPRs) is 15% while the SRS contribution rate for foreigners is 35% in view of the fact that they do not enjoy tax relief from CPF contributions. If you are a foreigner, you are required to give a written declaration of your foreign status for the calculation of your SRS contribution cap. You must make such a declaration on an annual basis for the SRS operator to calculate your SRS contribution cap.
Income base
From 1 Jan 2016, the absolute income base is $102,000.
Contribution cap
This works out to a contribution cap of $15,300 per annum for Singaporeans and SPRs, and $35,700 for foreigners.
Why is there a cap on SRS contribution?
SRS is meant to help individuals to save part of their income for their retirement, on top of their CPF contributions, and should not become a tax shelter for the asset-rich or high-income individuals. There is hence a cap on the SRS contributions. The 15% cap for locals contributions was decided after a public consultation in the early part of year 2000. The absolute income base is similar to that for CPF contributions (i.e. capped at $85,000 per annum from 1 January 2011, to be raised to $102,000 per annum from 1 January 2016).Can i use cpf fund to invest in SRS scheme?
No. All SRS contributions must be made in cash.
Can an SRS operator stop accepting an SRS contribution before 31 December?
The cut-off date for SRS contribution (at any SRS operator) is a commercial decision. SRS members should ask their SRS operator about the cut-off date for SRS contributions.Can a retiree who is under the statutory retirement age of 62 years make SRS contributions with the money that he has withdrawn from his CPF account?
Anyone can make SRS contributions at any age, unless they have started withdrawing from the SRS: i) at or after the statutory retirement age that was prevailing when you made your first SRS contribution, or; ii) on medical grounds.If a person is a non-PR in the current year but is a PR in the next year, what will his SRS contribution cap be in the next year?
If a person is a non-PR in 2001 but is a PR in 2002, his SRS contribution cap in 2002 should be computed at the rate of 15%, which is the rate applicable to a PR.Is my SRS contribution cap as a foreigner still valid if I obtain Singapore Permanent Resident (SPR) status in the later part of the year?
No, a pro-rated contribution cap applies. You should contact the SRS operator to have your contribution cap recalculated.Some employees have payments made to them via cheques from the company. Are they able to deposit these cheques into their SRS accounts?
Yes, employees may deposit their pay cheques into their SRS account, subject to the SRS contribution cap.What documents do I need to submit to the SRS operator when I wish to make SRS contributions?
If you are a Singaporean Citizen or Singapore Permanent Resident, no documents are needed. If you are a foreigner, you are required to give a written declaration of your foreign status for the calculation of your SRS contribution cap. You must make such a declaration on an annual basis for the SRS Operator to calculate your SRS contribution cap.