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Topping up CPF and SRS for tax relief

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Old Yesterday, 11:41 PM   #1
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Topping up CPF and SRS for tax relief

Anyone does that every year to get more tax relief? Does it makes sense to do that?
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Old Yesterday, 11:48 PM   #2
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Anyone does that every year to get more tax relief? Does it makes sense to do that?
If you have enough spare cash after topup and you sure you wont need it for the next 10 years and you can get tax relief, why not
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Old Yesterday, 11:50 PM   #3
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If you have enough spare cash after topup and you sure you wont need it for the next 10 years and you can get tax relief, why not
Do you do that yourself?

If you have 7k to top up, do u top up SA first to get 4% return I assume?
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Old Today, 12:00 AM   #4
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Do you do that yourself?

If you have 7k to top up, do u top up SA first to get 4% return I assume?

Depending lor, for me not at the moment
There will be pple who ask you to up alMost immediately la, end of the day depend whether you financially ok bo. For me, I would prefer to have at least 250k standby cash before I topup. Else, when one day opportunity come knocking your door, you say I no money , all in CPF. In additional, if you are planning to do BRS at age 55, this topup cannot be refunded hor
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Old Today, 12:14 AM   #5
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if you are in 20% tax bracket and beyond, makes sense to topup. Coz first you wouldnt be limited by cashflow assuming you are making 200k PA, 2nd you save on tax and can use the SRS funds invest in stocks.
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Old Today, 01:45 AM   #6
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Anyone does that every year to get more tax relief? Does it makes sense to do that?
The interest earned is way more than the tax relief.

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Old Today, 02:00 AM   #7
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Well, you don't have to do 7k if you're not comfortable with putting that much cash into CPF SA. I've been topping up 2k per year for the past 8 years as I'm comfortable with that amount. The tax relief and 4% gain on 2k are better than nothing. I also top up 7k per year to my mum's SA.
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Old Today, 02:03 AM   #8
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Well, you don't have to do 7k if you're not comfortable with putting that much cash into CPF SA. I've been topping up 2k per year for the past 8 years as I'm comfortable with that amount. The tax relief and 4% gain on 2k are better than nothing. I also top up 7k per year to my mum's SA.
Agreed with trying your personal best.

Have been topping up my SA & SRS for the past 15 years even though my income tax bracket is at 7%.

My SRS fund is now at 100k now.
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Old Today, 06:16 AM   #9
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I do that. It's worth it.
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Old Today, 08:37 AM   #10
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Agreed with trying your personal best.

Have been topping up my SA & SRS for the past 15 years even though my income tax bracket is at 7%.

My SRS fund is now at 100k now.
But one cannot top up SA once hit FRS right?
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Old Today, 08:42 AM   #11
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You may be eligible for tax relief for CPF MediSave, Special Account, and/or Retirement Account top ups to your own account(s) and/or to those of qualified family members. As a general rule, yes, itís well worth making top ups with tax relief.

As it happens, yes, my household maxes out its available CPF-related tax reliefs.
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Old Today, 08:45 AM   #12
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But one cannot top up SA once hit FRS right?
Yap. SA hits FRS about 2 years ago.
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Old Today, 09:10 AM   #13
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Do you do that yourself?

If you have 7k to top up, do u top up SA first to get 4% return I assume?
Yes, and topping up Medisave is another option. It earns the same interest rate and there is a separate limit, the Basic Healthcare Sum.
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Old Today, 09:37 AM   #14
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I feel so wasted and ashamed of myself... I should have also done RSTU & SRS a few years back... but I didn't. All I did was to think of ways to increase my tax relief (claiming tax reliefs w/o using cash) and keep as much cash as possible (planned to buy a 2nd property before the increased in ABSD was announced). For the past few years I've been hitting the 15% tax bracket slightly but in YA2018, it dropped to 11.5% as I have additional tax relief and rebate due to my baby, so income tax has been quite 'affordable' to me...

It was YA2019 that gave me a shock and made me start reading up RSTU & SRS carefully and eventually made me decided this is the way to go. Bcos of gratuity bonus, I hit 18% bracket and in the absence of the one-off parenthood $2.5k (shared) rebate, my income tax shot up by $12k!! This is the 1st time I really felt the pain.... I really regret not doing proper tax planning ahead of time, otherwise I could have saved a few thousand of dollars off this year's tax. A lesson I will remember always...


Agreed with trying your personal best.

Have been topping up my SA & SRS for the past 15 years even though my income tax bracket is at 7%.

My SRS fund is now at 100k now.

Last edited by madtari; Today at 09:39 AM..
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Old Today, 10:16 AM   #15
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I feel so wasted and ashamed of myself... I should have also done RSTU & SRS a few years back... but I didn't. All I did was to think of ways to increase my tax relief (claiming tax reliefs w/o using cash) and keep as much cash as possible (planned to buy a 2nd property before the increased in ABSD was announced). For the past few years I've been hitting the 15% tax bracket slightly but in YA2018, it dropped to 11.5% as I have additional tax relief and rebate due to my baby, so income tax has been quite 'affordable' to me...

It was YA2019 that gave me a shock and made me start reading up RSTU & SRS carefully and eventually made me decided this is the way to go. Bcos of gratuity bonus, I hit 18% bracket and in the absence of the one-off parenthood $2.5k (shared) rebate, my income tax shot up by $12k!! This is the 1st time I really felt the pain.... I really regret not doing proper tax planning ahead of time, otherwise I could have saved a few thousand of dollars off this year's tax. A lesson I will remember always...

Just checking , at 7K tax relief, does it really help in any drop between 18 to 15 perecent, we talking abt 7k tax relief right? Sorry i am not familiar in the field. I always pay full
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