How to Withdraw From EPF Account 3

As you may be aware, the Employees Provident Fund (EPF) has recently restructured its accounts. Now, members under the age of 55 will automatically have an EPF Account 3 (Fleksibel). The new distribution is 75% for Account 1 (Persaraan), 15% for Account 2 (Sejahtera), and 10% for Account 3 (Fleksibel).

EPF Account 3 is designed to help members manage short-term financial challenges, allowing them to focus on long-term planning. Let’s take a look at how you can go about withdrawing funds from your Account 3 and possibly putting it to good use.

One-time transfer to Account 3

Account 3 will start with a balance of RM0, requiring time to accumulate savings. However, members can make a one-time transfer from Account 2 to Account 3 between 12 May 2024 and 31 August 2024, allowing immediate withdrawals.

To transfer funds quickly, use the KWSP i-Akaun app. Unregistered users will need to complete eKYC (electronic Know Your Customer). Once the transfer request is made, it cannot be cancelled.

Guide to transfer funds to Account 3

1. Open the KWSP i-Akaun app and look for the "Akaun Fleksibel" banner. Click "Learn more".
2. Click "Next" through the account restructuring explanation.
3. Select "Transfer Now" for the initial amount transfer option available until 31 August 2024.
4. Read the FAQ for details on the one-time transfer and check the before and after balance calculations. Click "Proceed".
5. Make a final declaration by reading and accepting the terms. Click "Yes" to confirm. A confirmation number will be provided upon successful submission.

Transfer details

The transfer amount to Account 3 depends on your Account 2 balance. For balances of RM3,000 and above, 1/3 (33.33%) will be transferred to Account 3, and 1/6 (16.67%) to Account 1.

Here’s an example provided by the EPF:

Transfer timeline

Upon successful submission, your transfer should be reflected in Account 3 within 3–5 working days. You may check your account balance via KWSP i-Akaun.

Withdrawal process

Important points to note before withdrawing

1. Minimum withdrawal: RM50.
   1. You can withdraw online using the KWSP i-Akaun app.
2. Maximum withdrawal: Unlimited, but withdrawals over RM250 require eKYC if done online. If eKYC cannot be completed, visit an EPF office or Self-Service Terminal (SST) for thumbprint verification.
3. Daily limit: One withdrawal per day.

Steps to withdraw from Account 3 (Fleksibel)

1. Log in to your KWSP i-Akaun.
2. Click on Withdrawal at the bottom and select Withdraw your savings.
3. Choose Akaun Fleksibel and Withdraw Now (you need at least RM50 in the account).
4. Enter the withdrawal amount and click Continue.
5. Provide or update your bank account details (must be under your name) and click Continue.
6. Read and accept the Members Declaration.
7. Enter the TAC number for confirmation. A successful application confirmation page will appear.

Withdrawal limits and eKYC

Withdrawals from Account 3 are for members below 55 with sufficient savings in the account. You can withdraw any amount above RM50 without needing supporting documents, but an active bank account is recommended for smooth processing.

For identity verification, members don’t need to be physically present at EPF offices if the withdrawal amount doesn’t exceed RM30,000 and their previous withdrawal history does not have any red flags.

If members do not have a previous withdrawal history or if their bank account information varies from previous withdrawals, identity verification will be required and can be done via:

1. Thumbprint verification at any EPF office SST for amounts over RM10,000, or
2. Online verification for amounts under RM10,000.

Withdrawal timeline

Upon approval, EPF members with sufficient funds in Account 3 can expect their payment within 7 working days.

What you can do with the funds

Being prudent and responsible with spending is crucial in becoming financially stable in today’s world. If you have withdrawn funds from Account 3, try to use the money for only pressing matters or invest in profitable financial facilities.

💡 The information provided above is purely for educational purposes.