Another CPF Hack: The "Medisave Partner Push"

[henrylbh]

There are two things I am trying to do.

1) RSTU 7000 to get tax benefits.

2) Top up my spouse CPF with 37740 to SA that the amount gets 4% and grows.

Is that possible? I ask the question because if the CPF Limit per year is 37740 then I cannot RSTU 7000 and get tax benefit right?

Because 37740 + 7000 = 44740

Thats my confusion.

You can top up her SA with 44,740 or more if want to. But tax relief is limited to 7k. Top up limit is 171k.

 

[Retribution]

Hi henry,

I get that SA has a top-up limit of 171K.

However, per year I am only allowed to contribute 37740 to my spouse account correct? I cannot contribute 44740 (37740 + 7000) as it is above 37740 which is the annual CPF contribution limit.

Am I correct ? or my understanding is incorrect.

Thank You.

You can top up her SA with 44,740 or more if want to. But tax relief is limited to 7k. Top up limit is 171k.

 

[BBCWatcher]

The CPF Annual Limit ($37,740) does not apply when you top up your own or anyone else's Special Account or Retirement Account.

 

[Retribution]

Oh is it ?

I always thought that is the maximum anyone can contribute no matter where the money comes from and going too. 37740.

Thanx BBCWatcher. Much appreciated.

The CPF Annual Limit ($37,740) does not apply when you top up your own or anyone else's Special Account or Retirement Account.

 

[TabascoSauce]

Oh is it ?

I always thought that is the maximum anyone can contribute no matter where the money comes from and going too. 37740.

Thanx BBCWatcher. Much appreciated.

nope. 37,740 only applies to contribution from employment

things that dosnt count towards the 37k:
nsman award
SA top up.
Medisave-cum Subsidised Outpatient (MSO) scheme

 

[BBCWatcher]

nope. 37,740 only applies to contribution from employment

Voluntary Medisave and voluntary "all 3" account top ups are also subject to the CPF Annual Limit.

 

[JuniorLion]

nope. 37,740 only applies to contribution from employment

things that dosnt count towards the 37k:
nsman award
SA top up.
Medisave-cum Subsidised Outpatient (MSO) scheme

MSO contribution counts towards 37,740.

 

[MindMatrix]

cpf medisave contribution ceiling has increase to $54,500 this year. I don't see any papers publishing this news. Last year CPF secretly increase to $52k without informing also.

You don’t read news, it doesn’t mean it was secretly increased la. Try visiting cpf website or sign up for their email news.

 

[MindMatrix]

Oh is it ?

I always thought that is the maximum anyone can contribute no matter where the money comes from and going too. 37740.

Thanx BBCWatcher. Much appreciated.

I also was confused till my colleague explained to me. There’s 2 limits for CPF.

1) CPF annual limit of 37,740. It includes our normal cpf con from employer/employee and any voluntary con that we decide to make. The money go into the 3 cpf accounts, ordinary, special and Medisave.

2) cpf top up where we will top up to special account if below 55 yrs old and top up to retirement account if above 55. There’s no annual limit but we can only top up until the account reach the full retirement sum in special acct (currently 171,000 in 2018) and enhanced retirement sum in retirement acct (256,500 in 2018). But tax relief is capped at 7k a year if using cash to top up.

 

[shareholder]

Any way to maximise cpf if unemployed and early 40s? Income from dividends and interests.

 

[Retribution]

Thanks MindMatrix and everyone.

This is new to me. Appreciate your knowledge sharing.

Greatly helps in my retirement planning.

 

[TabascoSauce]

MSO contribution counts towards 37,740.

no it dosnt. my contribution from employment + MSO is $40,124 for 2017.

 

[TabascoSauce]

Voluntary Medisave and voluntary "all 3" account top ups are also subject to the CPF Annual Limit.

yes, thanks for correcting. was onli thinking of the employment part

 

[JuniorLion]

no it dosnt. my contribution from employment + MSO is $40,124 for 2017.

Yes, it does.

Case 1: If your mandatory contribution from Employment + MSO > $37,740, you get to keep it in your CPF.

Case 2: If your mandatory contribution (MC) from Employment + MSO <= $37,740, you may do a voluntary contribution of amount = 37,740 - (MC+MSO).


Case 2 illustrates the point that MSO counts.