Retirement Sum Topping-up (RSTU) Scheme

[aarontansp]

Dear Experts,

Looking for some advise

1. Can I confirm that Retirement Sum Topping-up (RSTU) Scheme is subjected to Annual Limit of $37,740?

2. Is Retirement Sum Topping-up (RSTU) considered as voluntary contributions?

Thanks

 

[kehyi4]

Dear Experts,

Looking for some advise

1. Can I confirm that Retirement Sum Topping-up (RSTU) Scheme is subjected to Annual Limit of $37,740?

2. Is Retirement Sum Topping-up (RSTU) considered as voluntary contributions?

Thanks

Nope and nope

RSTU is a separate scheme from VC. CPF Annual Limit of $37740 does not apply to RSTU

RSTU limit is FRS in SA, so technically, you can one-shot top up $176k if your SA is 0. But only the first 7k qualifies for tax relief

 

[aarontansp]

Nope and nope

RSTU is a separate scheme from VC. CPF Annual Limit of $37740 does not apply to RSTU

RSTU limit is FRS in SA, so technically, you can one-shot top up $176k if your SA is 0. But only the first 7k qualifies for tax relief

I see some people transfer their OA to SA. Wouldn't this expedite hitting FRS and then no longer allow cash top-up for tax relief?

 

[SKenny]

Nope and nope

RSTU is a separate scheme from VC. CPF Annual Limit of $37740 does not apply to RSTU

RSTU limit is FRS in SA, so technically, you can one-shot top up $176k if your SA is 0. But only the first 7k qualifies for tax relief

The above is correct if you are below 55.

If you are above 55, you top up to your RA. The RSTU limit then will be the prevailing ERS (excluding any interest earned).

 

[JuniorLion]

I see some people transfer their OA to SA. Wouldn't this expedite hitting FRS and then no longer allow cash top-up for tax relief?

It's a trade off between getting more tax reliefs and getting higher interest rates.

 

[Arxxxx]

Nope and nope

RSTU is a separate scheme from VC. CPF Annual Limit of $37740 does not apply to RSTU

RSTU limit is FRS in SA, so technically, you can one-shot top up $176k if your SA is 0. But only the first 7k qualifies for tax relief

Hmmm so if oneshot top up max hor, assuming the SA interest will outgrow the yearly FRS increment limit, can the excess interest be withdrawn after age 55?

 

[JuniorLion]

Hmmm so if oneshot top up max hor, assuming the SA interest will outgrow the yearly FRS increment limit, can the excess interest be withdrawn after age 55?

Everything in excess of FRS can be withdrawn at age 55 and beyond.

 

[cal3135]

yes bro, it’s ur decision if to withdraw bal OA/SA after u satify FRS.

Hmmm so if oneshot top up max hor, assuming the SA interest will outgrow the yearly FRS increment limit, can the excess interest be withdrawn after age 55?

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[Toni90]

Hmmm so if oneshot top up max hor, assuming the SA interest will outgrow the yearly FRS increment limit, can the excess interest be withdrawn after age 55?

Top up can not withdrawn at 55

 

[Arxxxx]

yes bro, it’s ur decision if to withdraw bal OA/SA after u satify FRS.

Thanks! wa quite good leh, need aim to max my SA fast liao...if got excess $100,000 means $4,000 passive income P.A...risk-free! Gonna OA transfer my balance to SA liao.

 

[aarontansp]

Will leaving 20k in OA a good move Instead of moving all to SA?

 

[cal3135]

diff betw ur 20k OA vs SA is 0.5%(canx this sentence)
Hence not a bad idea if u unsure needs on ur OA

Will leaving 20k in OA a good move Instead of moving all to SA?

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[hwmook]

diff betw ur 20k OA vs SA is 0.5%
Hence not a bad idea if u unsure needs on ur OA

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How you compare ah? I see a 1.5% difference between OA and SA.

 

[SBC]

diff betw ur 20k OA vs SA is 0.5%
Hence not a bad idea if u unsure needs on ur OA

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Many are aware of the +1% for the first 60k. But this first 60k is meant for the combined accounts. It does not matter which account is holding this 60k.

Most of us are using the bulk of OA to service our mortgage. Important to have enough buffer for this purpose.

 

[cal3135]

My bad, just clarified.. first 60k will attracts 1% with OA limited to 20K

Many are aware of the +1% for the first 60k. But this first 60k is meant for the combined accounts. It does not matter which account is holding this 60k.

Most of us are using the bulk of OA to service our mortgage. Important to have enough buffer for this purpose.

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[cal3135]

OA for needs on usage.
Transfer to SA if u don’t need.
Yes 1.5 diff

How you compare ah? I see a 1.5% difference between OA and SA.

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[DOINK1]

Top up cash to SA qualify of tax relief up till 7k a year. What about topping up cash to MA? Do I still qualify for tax relief and I suppose maximum of 7k a year too?

 

[Toni90]

Top up cash to SA qualify of tax relief up till 7k a year. What about topping up cash to MA? Do I still qualify for tax relief and I suppose maximum of 7k a year too?

Can qualify. Maximum is your annual contribution limit and MA limit.

 

[aarontansp]

Can qualify. Maximum is your annual contribution limit and MA limit.

If MA limit exceed, all 7K will overflow into SA.
Is this still counted as tax relief?

 

[BBCWatcher]

If MA limit exceed, all 7K will overflow into SA.
Is this still counted as tax relief?

No. If you somehow exceed either the CPF Annual Limit or the Basic Healthcare Sum, your MA top-up will be refunded without interest, and you will not get tax relief.