Article no 1
Date 10-Aug-22
HOW MUCH MONEY CAN YOU WITHDRAW FROM NPS: –
Under NPS, you can open two accounts – Tier-I and Tier-II. Tier-II is a savings account that is to be opened voluntarily and there are no restrictions on withdrawal. It’s Tier-I (main, retirement account) withdrawal rules that you need to be aware of. You can make partial withdrawals from this account before retirement, subject to some restrictions.
You can withdraw 25 percent of your own contributions to the account after completing five years. Only for below mentioned reasons:
- Treatment of illness,
- Disability
- Fund education or marriage of children and finance property purchase.
- You can also make this withdrawal if you plan to start a new venture.
You are allowed to withdraw a maximum of three times during the entire period of investment.
In case you close NPS Account before maturity, you can withdraw up to 20 percent of the corpus in the account as lump-sum. 80 percent of the corpus has to be mandatorily used to purchase annuity plan from empanelled life insurance companies.. If the total corpus in the account is less than Rs 2.5 lakh, Entire amount as lump-sum will be paid to you.
HOW THE WITHDRAWAL HAPPENS AFTER RETIREMENT: –
The regular, final withdrawal can be made once you turn 60. You can withdraw up to 60 percent of the corpus as lump-sum. However, you have to compulsorily convert the balance 40 percent into annuities. If your accumulated corpus is less than Rs 5 lakh, the entire lump-sum will be handed out to you.
