CPF Top up questions

[kehyi4]

If I transfer money from my OA to MA and SA to max it(BHS and FRS). How will be the allocation of the CPF contribution from the company? All 100% go to OA?

Your CPF contribution from employment will be divided into OA/SA/MA according to age as usual:

OA portion will go to OA (no change)
SA portion will go to SA (no change, even with SA > FRS. Yes this means your SA will go above FRS)
MA portion will go to OA (since MA=BHS and SA > FRS)

 

[BBCWatcher]

If I transfer money from my OA to MA and SA to max it(BHS and FRS).

You cannot transfer funds from your OA to your MA. Only from OA to SA, only while the SA is below the Full Retirement Sum, and only before your 55th birthday.

You can make cash top-ups to your own MA (and with tax relief) provided you have some room below the CPF Annual Limit and as long as you haven't hit the Basic Healthcare Sum.

 

[Danger21]

May I know by when must I do the top up for tax relief?

Sent from Xiaomi REDMI NOTE 4X using GAGT

 

[student_sdu]

Assuming BHS and FRS both are hit, for the interest,
1. OA interest goes to OA.
2. MA interest goes to OA.
3. SA interest goes to SA.
4. How about the 1% extra interest? Going to SA as well? Or OA?

Your CPF contribution from employment will be divided into OA/SA/MA according to age as usual:

OA portion will go to OA (no change)
SA portion will go to SA (no change, even with SA > FRS. Yes this means your SA will go above FRS)
MA portion will go to OA (since MA=BHS and SA > FRS)

 

[kehyi4]

Assuming BHS and FRS both are hit, for the interest,
1. OA interest goes to OA.
2. MA interest goes to OA.
3. SA interest goes to SA.
4. How about the 1% extra interest? Going to SA as well? Or OA?

Extra interest is always paid into SA/RA:

CPF Interest Rates:
Extra Interest
An extra 1% interest per annum is currently paid on the first $60,000 of a member’s combined balances (with up to $20,000 from OA).

Extra interest received on monies in the OA will go into the member’s SA or RA to enhance his or her retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.

 

[BBCWatcher]

May I know by when must I do the top up for tax relief?

The absolute latest moment when you can top up any CPF account for tax relief in 2018 (Year of Assessment 2019) is 10:00 a.m. on December 31, 2018, and then only if you visit a CPF office with a paper check. e-Cashier and AXS top-ups are probably OK if you get them done on December 26, 2018, and PayNow QR will probably be OK up through December 28, 2018.

 

[vddgnd]

Edit: found my answer.
Sorry if this has been asked before.
1) May I know is the annual CPF cap of $37,740 including SA cash top up?

To calculate this annual CPF contribution, is it the mandatory contribution (employer + employee contribution) plus voluntary contribution (SA cash top up + contribute to MA for tax deduction).
Ans.: SA not included.

2) Is the "top up to Medisave to Pay MediShield Life premium" option no tax relief?

3) So must careful choose "contribute to my medisave (tax deduction) in order to get tax relief?
Ans.: top up to Medisave to Pay MediShield Life premium only for outstanding premium. My MA has enough fund so no such option for me.

 

[ricky48]

Hi Guys,

1. Regarding this CPF Limit, is it correct to say that we will only know for sure what is the total remaining from CPF Limit after December 2019 Mandatory Employee and Employer contribution has been made? Because I assume salary may go up (or down) and bonus can vary.

3. Lets say, I make rough calculation that my Mandatory Employee and Employer contribution from Jan - Dec 2019 is SGD 32,740. If I make a VC to my Medisave on January 2019 for amount of SGD 6,000, means I have exceed the CPF Annual Limit by SGD 1,000 (SGD 37,740 vs 38,740).

A. Is it correct that the SGD 1,000 will be returned next year in 2020, even though I make VC to my Medisave (SGD 6,000) in January 2019? And this SGD 1,000 will be returned without any interest. Is this correct?

B. Is my remaining VC (SGD 5,000) still receive the Medisave CPF interest rate of (4%) from January to December 2019?

Thank you in advance for your answer

 

[BBCWatcher]

1. Regarding this CPF Limit, is it correct to say that we will only know for sure what is the total remaining from CPF Limit after December 2019 Mandatory Employee and Employer contribution has been made? Because I assume salary may go up (or down) and bonus can vary.

A lot of people can predict, with high confidence, that they won't hit the CPF Annual Limit. For example, anybody earning less than $6,000/month for even one month can make this prediction. A newly minted Permanent Resident can make this prediction with high confidence, as another example. Anybody who's unemployed for even one month won't hit the CPF Annual Limit.

To hit the CPF Annual Limit you need $6,000/month or more (not counting the CPF employee contribution) of regular employment income for all 12 months and at least $30,000 of total bonus employment income. Even if you get a regular salary of $100,000/month for 12 months (but no bonus, or only a $10,000 bonus), that's not enough to hit the CPF Annual Limit.

3. Lets say, I make rough calculation that my Mandatory Employee and Employer contribution from Jan - Dec 2019 is SGD 32,740. If I make a VC to my Medisave on January 2019 for amount of SGD 6,000, means I have exceed the CPF Annual Limit by SGD 1,000 (SGD 37,740 vs 38,740).

A. Is it correct that the SGD 1,000 will be returned next year in 2020, even though I make VC to my Medisave (SGD 6,000) in January 2019? And this SGD 1,000 will be returned without any interest. Is this correct?

All correct.

B. Is my remaining VC (SGD 5,000) still receive the Medisave CPF interest rate of (4%) from January to December 2019?

No, not quite. It'll be interest starting from February 1, 2019, if you make a MediSave top-up in January (this month, and credited within this month). CPF won't credit interest for January because we're already in January, and partial months don't count for these particular purposes.

 

[kehyi4]

Hi Guys,

1. Regarding this CPF Limit, is it correct to say that we will only know for sure what is the total remaining from CPF Limit after December 2019 Mandatory Employee and Employer contribution has been made? Because I assume salary may go up (or down) and bonus can vary.

3. Lets say, I make rough calculation that my Mandatory Employee and Employer contribution from Jan - Dec 2019 is SGD 32,740. If I make a VC to my Medisave on January 2019 for amount of SGD 6,000, means I have exceed the CPF Annual Limit by SGD 1,000 (SGD 37,740 vs 38,740).

A. Is it correct that the SGD 1,000 will be returned next year in 2020, even though I make VC to my Medisave (SGD 6,000) in January 2019? And this SGD 1,000 will be returned without any interest. Is this correct?

B. Is my remaining VC (SGD 5,000) still receive the Medisave CPF interest rate of (4%) from January to December 2019?

Thank you in advance for your answer

This one very easy to answer: Yes to everything

Except for (B) -> the $5k will receive interest from Feb to Dec, ie no interest for Jan, because interest is based on lowest balance per month and it's impossible to top up on 1 Jan (non business day), i think

 

[sgdividends]

A lot of people can predict, with high confidence, that they won't hit the CPF Annual Limit. For example, anybody earning less than $6,000/month for even one month can make this prediction. A newly minted Permanent Resident can make this prediction with high confidence, as another example. Anybody who's unemployed for even one month won't hit the CPF Annual Limit.

To hit the CPF Annual Limit you need $6,000/month or more (not counting the CPF employee contribution) of regular employment income for all 12 months and at least $30,000 of total bonus employment income. Even if you get a regular salary of $100,000/month for 12 months (but no bonus, or only a $10,000 bonus), that's not enough to hit the CPF Annual Limit.


All correct.


No, not quite. It'll be interest starting from February 1, 2019, if you make a MediSave top-up in January (this month, and credited within this month). CPF won't credit interest for January because we're already in January, and partial months don't count for these particular purposes.

Bbcwatcher, this 6000, does it include employer CPF contribution that is added to the gross salary ?

Meaning 6000 = take home pay + employer CPF contribution + employee CPF contribution ?

 

[BBCWatcher]

Bbcwatcher, this 6000, does it include employer CPF contribution that is added to the gross salary ?
Meaning 6000 = take home pay + employer CPF contribution + employee CPF contribution ?

No. Just take home pay + employee CPF contribution.

The CPF Annual Limit is equal to $6,000 * 17 months * 37%. The 37% rate is the combined employer plus employee contribution rate, so the employer part isn't part of the $6,000 figure when you're trying to figure out the earnings cap.

You can get up to 12 of those 17 months from monthly regular salary. You can get up to 5 of those 17 months from variable bonuses, commissions, and other non-regular pay -- equal to total bonuses of $30,000 (excluding the employer contribution again). If you receive less than $30,000 in variable pay during the calendar year, or you receive fewer than 12 months of regular salary, or your regular salary is less than $6,000 (including employee contribution) in any month, or if you're self-employed or working outside Singapore (and not subject to CPF contributions) for at least part of the year, or if you're a newly minted PR and subject to lower contributions for at least part of the year -- if any of those conditions holds -- then you'll have at least some gap below the CPF Annual Limit.

As an example, you could work for two months in 2019 and earn $80,000 per paycheck, and get a whopping $500,000 bonus, and you would still have room below the CPF Annual Limit. You only worked two months, so you only clocked 2 out of the 12 months for regular salary. That'd mean 10 months of no contributions, which means 10 * $6,000 * 37% = $22,200 of available voluntary MediSave and "all three" account top-ups you could make (total combined limit).

 

[dreamingsoul]

how do i check on the CPF website how much has gone into my CPF Annual Limit this year?

means i can top up the shortfall of (37,740 - contribution for the yr) right?

 

[Syaman]

You can login to check and total up your CPF contribution history

 

[BBCWatcher]

means i can top up the shortfall of (37,740 - contribution for the yr) right?

You can top up your Special Account all the way up to the Full Retirement Sum right now if you wish. (Or, if you're age 55 or older, you can top up your Retirement Account all the way up to the Enhanced Retirement Sum.) The CPF Annual Limit does not apply to SA or RA top ups.

The CPF Annual Limit applies to MediSave Account top ups, and it also applies to "all three" (OA+SA+MA) top ups.

 

[henrylbh]

The CPF Annual Limit is equal to $6,000 * 17 months * 37%.

The CPF Annual Limit is $37,740 and not exactly the way you described.

Can one gets $6k pm and 12 months (or even 24 months) bonus and still not hit the CPF Annual Limit?

 

[BBCWatcher]

The CPF Annual Limit is $37,740 and not exactly the way you described.

Can one gets $6k pm and 12 months (or even 24 months) bonus and still not hit the CPF Annual Limit?

That would be sufficient to hit the CPF Annual Limit.

 

[yoongf]

Use the cpf website to log in. The app dun hv this feature.
Go to the section where u try to top up medisave (tax relief)

After clicking yes yes agree etc, u will come to a screen that shows “ check allowable contrubtion”. Press that button and it will show how much more u can contribute.

how do i check on the CPF website how much has gone into my CPF Annual Limit this year?

means i can top up the shortfall of (37,740 - contribution for the yr) right?

 

[lupster]

Anyone knows how long it takes for MA voluntary contribution to go through? According to the CPF site, payments via PayNow QR application will be processed almost instantly. Does it mean it's instant? Or still gotta wait 2-3 working days after the "application"?

 

[776ALA]

If I top up my medisave to 60k on 1st Jan. Will the interest for 2019 go to my SA instead?