NPS Emergency Withdrawal Rules: How Much Money Can You Withdraw and When?

NPS Scheme Emergency Withdrawal: The National Pension System (NPS) is generally viewed as a savings plan for retirement. However, withdrawals are also permitted in case of emergency. However, certain rules apply. First, know that partial withdrawals are only possible if you have contributed to NPS for at least three years. If you don’t fall within this limit, you won’t be able to withdraw money from NPS in an emergency. Let us explain the maximum amount you can withdraw from NPS in an emergency.

You can withdraw money in these emergency situations

You can withdraw funds from your NPS account in case of emergencies or special circumstances, such as expenses related to serious medical conditions, including treatment of yourself, your spouse, your children, or your dependent parents, your children’s higher education, your child’s marriage, or for the purchase or construction of your first home.

How much money can you withdraw in an emergency?

Many people are now wondering how much money an account holder can withdraw from their NPS account in an emergency. A limit has been set for this, allowing you to withdraw a maximum of 25% of your contribution. This amount is completely tax-free and is transferred directly to your bank account, provided the correct reason and documentation are presented.

Emergency evacuation rules

To withdraw funds from your NPS account, you must first submit an application at a POP/Nodal Office or through the official portal. Proof of the expenses for which you are withdrawing funds must be provided along with the application. For example, you may need to submit a medical bill, admission document, or a home purchase agreement.

It’s worth noting that you can make a maximum of three emergency withdrawals from NPS. Each time, you can only withdraw up to 25% of your contribution. Employer contributions are not included. If your account is only three years old, you won’t be allowed to withdraw funds before that.