CPF Easy Info Thread. :)

[bladez87]

what if at this time SA is also maxed?

O ya. What happens if you vc to all 3 when your ma hit max, sa already hit FRS.

I wonder if that is possible for an average salaried worker. Need to do some maths to work it out

 

[elnewbie]

In such a case then it's:

MA to OA
SA will still go to SA
OA to OA

O ya. What happens if you vc to all 3 when your ma hit max, sa already hit FRS.

I wonder if that is possible for an average salaried worker. Need to do some maths to work it out

 

[mata_hippo]

Jus finished readingthis thread but there may still be things im unclear

Im alrdy doing the oa>sa every year

Should i also start doing cash top ups?

30 this year mthly salary is high 5

 

[crimsontactics]

There's another hack which my wife uses. Her MA already hit the limit. So After VC, she then does an OA to SA transfer. This is not considered as under the RSTU, so funds won't be locked up when you turn 55.

This is one good way of doing a "VC to SA only"

Thanks for the tip!

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[crimsontactics]

To be frank, by the time your SA balance hits FRS, your salary would have probably reached a level where you are no longer eligible to do VC. Unless you're those buay kan types at work.

6k can reach, but 5 month bonus hard...

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[crimsontactics]

O ya. But if we have not max ma, we should choose vc to ma first. Upon maxing ma, we are only left with vc to all 3.

So to maximize sa contributions, vc to ma, then vc to all 3.

Actually I'm against VC to MA.

That's because you can't withdraw MA.

I would advice just VC to all 3 and let MA fill up naturally.

The pirority is to get as much money as you can into SA.
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[bladez87]

Jus finished readingthis thread but there may still be things im unclear

Im alrdy doing the oa>sa every year

Should i also start doing cash top ups?

30 this year mthly salary is high 5

see...mata same age as me, income 30% more than me. middle income is really very relative.

 

[a4973]

What I referred to in post 127 is VC to all 3 accounts. But because the MA BALANCE is already maxed out, whatever that would have gone into MA now goes into SA.

Next step is to then do a OA to SA transfer.

Hope this clarifies.

In such a case then it's:

MA to OA
SA will still go to SA
OA to OA

i vaguely remember something about being refunded without interest on some kind of top up if the accounts have hit the cap.
was that for Cash RSTU to SA?

 

[crimsontactics]

i vaguely remember something about being refunded without interest on some kind of top up if the accounts have hit the cap.
was that for Cash RSTU to SA?

For both.

Both RSTU and VC have their own limits.

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[crimsontactics]

Jus finished readingthis thread but there may still be things im unclear

Im alrdy doing the oa>sa every year

Should i also start doing cash top ups?

30 this year mthly salary is high 5

Depends more on what kind of person you are.

If you can handle risk, you may want to invest in other higher risks areas.

For people like me who don't like risk, then CPF SA, followed by VC.

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[elnewbie]

No. That's for VC. The system can't validate if you have hit the VC cap when you initiate this during the year since your employer is also making contributions. It's only at the end of the year, after taking the employer contributions into consideration.

i vaguely remember something about being refunded without interest on some kind of top up if the accounts have hit the cap.
was that for Cash RSTU to SA?

 

[bladez87]

No. That's for VC. The system can't validate if you have hit the VC cap when you initiate this during the year since your employer is also making contributions. It's only at the end of the year, after taking the employer contributions into consideration.

o. so i can make the VC top up at the start of the year. and then any excess would be refunded. but the interest part that they exclude, what do they mean?

because CPF interest is calculated with the lowest amount at each month, if i were to top up VC in Jan, my CPF balance would be at the "highest" it can be at any given month for the year.
so if that is the case, it would benefit me to pump my VC in Jan, then at year end, they can refund me any excess above 37k without any interest. i would have maximized the monthly interest into CPF, yet getting my excess back which would otherwise be sitting inside bank at 1%.

 

[bladez87]

Actually I'm against VC to MA.

That's because you can't withdraw MA.

I would advice just VC to all 3 and let MA fill up naturally.

The pirority is to get as much money as you can into SA.
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cannot withdraw MA, but ma will overflow to SA.
i can work out the maths to see which method will allow the SA to fill up faster.
Also because vc to 3, will allocate a portion to OA, which should reduce the speed of maxing your ma to overflow into SA.

 

[crimsontactics]

o. so i can make the VC top up at the start of the year. and then any excess would be refunded. but the interest part that they exclude, what do they mean?

because CPF interest is calculated with the lowest amount at each month, if i were to top up VC in Jan, my CPF balance would be at the "highest" it can be at any given month for the year.
so if that is the case, it would benefit me to pump my VC in Jan, then at year end, they can refund me any excess above 37k without any interest. i would have maximized the monthly interest into CPF, yet getting my excess back which would otherwise be sitting inside bank at 1%.

The refund does not include interest.

No interest will be paid to any refunded amount..

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[crimsontactics]

cannot withdraw MA, but ma will overflow to SA.
i can work out the maths to see which method will allow the SA to fill up faster.
Also because vc to 3, will allocate a portion to OA, which should reduce the speed of maxing your ma to overflow into SA.

But if SA not filled, why not just RSTU?

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[oceanicmanta]

Jus finished readingthis thread but there may still be things im unclear

Im alrdy doing the oa>sa every year

Should i also start doing cash top ups?

30 this year mthly salary is high 5

shld certainly consider Cash top up to SA for the Tax relief (guessing u r around 8% to 10% bracket?).

or even SA top up for Spouse or Parents for more tax relief

and also SRS contribution.

all depends on your tax & cash situation

 

[crimsontactics]

shld certainly consider Cash top up to SA for the Tax relief (guessing u r around 8% to 10% bracket?).

or even SA top up for Spouse or Parents for more tax relief

and also SRS contribution.

all depends on your tax & cash situation

I think tax relief should be secondary.

Assuming you're paying 22% tax on that 7k, you only save $1540.

The compound interest is more important.

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[oceanicmanta]

I think tax relief should be secondary.

Assuming you're paying 22% tax on that 7k, you only save $1540.

The compound interest is more important.

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I disagree. Tax savings is still savings.
The saving of $1540 also generates interest.
Tax paid is lost.

 

[crimsontactics]

I disagree. Tax savings is still savings.
The saving of $1540 also generates interest.
Tax paid is lost.

To save that $1540 a year, you must be earning around $330k a year.

That's out of reach to the average Sinkie.

Their real savings is actually way way lower due to SG low tax rates.

Thus tax saving is not important at all.

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[crimsontactics]

At SG median wage of $42k per annum.

Assuming you're a male.

Earned Income Relief = $1,000
NSman Relief w no ICT = $1,500
CPF Fund Relief = $8,400

The only taxable wage is $31.1k

Tax saved only $235.

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