Can an SRS account holder transfer his balance in the SRS account to the CPF Special Account?

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Last updated 1y ago

An SRS account holder is not permitted to transfer his balance in the SRS account to the CPF Special Account. This is because the SRS and CPF are two different retirement schemes. Unlike the CPF scheme, which is a completely tax exempt scheme, the SRS scheme is a tax deferral scheme. SRS contributions qualify for a tax relief but 50% of the withdrawals made at or after retirement are taxable. Any transfer of balances out of the SRS account constitutes a taxable withdrawal. CPF qualifies for more favourable tax treatment than SRS because CPF caters for basic retirement needs while SRS caters for supplementary retirement needs. Allowing the transfer of monies between the two schemes blurs the distinction between the schemes and goes against the objective of having two schemes in the first place.

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Can an SRS account holder transfer his balance in the SRS account to the CPF Special Account?

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