The third provident fund account should be launched in April 2024!
According to a message from Deputy Finance Minister Datuk Seri Ahmad Maslan, the government recommends that the Employees Provident Fund Board (KWSP) launch a third provident fund account from April 2024.
The Provident Fund Bureau is scheduled to announce dividend payments in February 2024, and will then announce the details of the third provident fund account at the same time. The third account can then be launched in April.
It is understood that the third provident fund account is a flexible account, but it needs to meet relevant conditions. For example, members can only pay a specific proportion of their salary into the third account every month. The third provident fund account can only withdraw money in emergencies. KWSP will announce in the future what so-called emergencies include.
Currently, KWSP has a total of 2 accounts, namely the first account and the second account, the ratio is 70% to 30% respectively. The first provident fund account can only withdraw funds when the member reaches the age of 55, while the second account can apply for withdrawal when buying a house, paying medical expenses, paying tuition fees, etc.