Voluntary Contributions represents contributions which an RSA holder can contribute voluntarily into his or her Retirement Savings Account through an Employer.
• Voluntary Contributions like RSA contributions must come from an Employer.
• Voluntary Contributions are tax-exempt; however, tax will be paid on the income made from investment.
• Voluntary Contributions helps to increase contributions in Retirement Savings Account of an RSA holder thereby securing comfortable life after retirement as it helps to boost RSA balance.
• You can make 50 % withdrawal of your Voluntary Contributions once in two years. However, the return on investment would be taxed (not the principal) if withdrawal is made within 5 years from date of first contribution.
• For Voluntary Contributions, you are at liberty to decide the amount and frequency of contributions monthly or quarterly.
• Voluntary Contributions attracts return on investment.