Hello to all Do you still recall the personal tax relief for contribution made on PRS? If you are not so sure, just click the following web-link for more: http://www.ppa.my/index.php/how-prs-works/tax-incentives/ As mentioned during PRS Familiarization program, tax incentives or tax credit has been the core reason behind most pension schemes to motivate an individual to take part in the scheme voluntarily. In addition, incorporated companies (Sdn. Bhd and Bhd) will also be given tax deduction on contributions to PRS made on behalf of their employees above the EPF statutory rate up to 19% of the employees’ remuneration (as illustrated & demonstrated during class). But for today's posting, let’s focus on personal tax relief of RM 3,000 p.a (the first 10 years from assessment year 2012). To reiterate, the personal tax relief of RM 3,000 p.a are granted for either both PRS and Annuity plans . In the class, we discuss briefly about the Annuity Plan by Great Ea
Annuities as income, not investments By Robert Powell You probably aren’t even aware that you’re doing it, but you are. You are “optimizing imperfectly” when it comes to taking money from your defined benefit, 401(k), and other retirement plans . Instead of putting some of your money earmarked for retirement in a life annuity, a product that would give you guaranteed income for life, you’re taking a lump sum. And that, according to a just-published paper from the National Bureau of Economics, may not be in your best interest . “ Guaranteed lifetime income, such as in the form of annuities, is incredibly valuable for retirees ,” said Jeffrey Brown, a professor at University of Illinois at Urbana-Champaign and a co-author of the paper, Framing Lifetime Income. “It is the single best way on a risk-adjusted basis to maximize one’s ability to spend in retirement without concerns about running out of resources. Every other strategy either exposes the individual to more ris