Yes there is.
Is there a cap?
Yes there is.
Is there a cap?
We can only top up from next year right?Yes for the tax reliefs.
Various ways. AXS is one option.
Yes for the tax reliefs.
Various ways. AXS is one option.
u know what's BHS?
If current MA already hit $52,000, can I top up MA now or must I wait for next year?
I guess you could look at it that way if you're somebody who has already hit the Basic Healthcare Sum. Another way to look at it is that the government is raising the cap fairly aggressively, and that's a good thing because it means you can save that much more into an account paying above market interest. Within reason, I certainly don't think it's bad. The BHS is not an obligation, just a limit to that subaccount.Actually the increase is not that much given the 4% interest for Medisave account. The actual real increase is less than 1%
From my personal experience:... I assume the 4% Medisave interest is credited after the BHS is raised each year. Is that correct?
OK, interesting (for those at the BHS limit). So there's a window when a $2,500 top-up is possible (difference between 2018 and 2017 BHS), assuming the CPF Annual Limit is respected.Interest is credited before the limit is raised, even if the actual crediting takes place a few days into the new year. Any amount above the old BHS is transferred (to SA or OA as the case may be), then the new BHS is applied
I guess you could look at it that way if you're somebody who has already hit the Basic Healthcare Sum. Another way to look at it is that the government is raising the cap fairly aggressively, and that's a good thing because it means you can save that much more into an account paying above market interest. Within reason, I certainly don't think it's bad. The BHS is not an obligation, just a limit to that subaccount.
I don't actually know how Medisave interest crediting works. I know the bonus interest is credited into the Special Account. I assume the 4% Medisave interest is credited after the BHS is raised each year. Is that correct?
If that is correct, for those of you lucky to have $52,000 in your Medisave Accounts for all of 2017, you should wake up on January 1, 2018, and see $54,080 in your Medisave Account, to reflect the 4% interest on $52,000 for all 12 months. (OK, it might be a dollar or two less than that since you probably weren't able to get interest credit on the full $52,000 in January, 2017, but it'll be close.) So then you might be able to swoop in and add $420+, to get you back up to the new BHS ($54,500). A $420 top up is not a tremendously big one, no -- you might have that much room (or more) below your CPF Annual Limit. If you can get that little bit more of tax relief, sure, great idea.
If your regular monthly salary in 2018 (12 months) is $6,000 or more and if your total variable/bonus salary is $30,000 or more, then (unless you are on new PR reduced contribution rates) you definitely will not have any room below the CPF Annual Limit. As another example, if you earn $10,000/month for 12 months and receive no variable/bonus compensation, then you should have some room below the CPF Annual Limit.
OK, interesting (for those at the BHS limit). So there's a window when a $2,500 top-up is possible (difference between 2018 and 2017 BHS), assuming the CPF Annual Limit is respected.
Do you happen to know if you must wait for the December payroll cycle's compulsory contribution to hit Medisave? Or is it OK for those in this situation to rush in before the December cycle pops up? I haven't really understood that part of CPF, ever -- whether (for purposes of limits, like the CPF Annual Limit and BHS) CPF goes by when CPF receives the funds or how the funds are "tagged" with the payroll month.