Pre-close an NPS
Yes, you can pre-close a National Pension System (NPS) account under certain circumstances. If the NPS account has been active for at least three years, you are allow to make a partial withdrawal of up to 25% of the contributions made. This withdrawal is tax-free. If you wish to close the account entirely, you must use at least 80% of the remaining amount to purchase an annuity. Which provides a regular pension after retirement.
For further details access our website: https://vibrantfinserv.com
The remaining 20% can be withdrawn as a lump sum, but it is subject to tax. It is important to note that premature withdrawal before three years of opening the account do not allow, except in specific cases such as the death of the account holder.