Anyone here do cash top-up CPF?

[Xcert]

I though need top up 8k

8K for ownself is max....U dont have to do 8K if not enough.

 

[Slowdown]

while attending a skill future course, got a rich hao lian boomer told me every year he will pass $8k to his sons and asked them top up his father CPF so as to enjoy tax relief....i was like wow.

That is actually a very smart thing to do.

Father not working and hence no tax. Pass the money to children to top up CPF. Children enjoy tax relief. Then withdraw the CPF money as expenses. It is a good strategy.

 

[blankies]

That is actually a very smart thing to do.

Father not working and hence no tax. Pass the money to children to top up CPF. Children enjoy tax relief. Then withdraw the CPF money as expenses. It is a good strategy.

Must learn all the smart moves.......but the top up is to top up OA or ra for the parents?

 

[Slowdown]

Must learn all the smart moves.......but the top up is to top up OA or ra for the parents?

Should be RA and/or MA. Should not be OA.

 

[CheapColaCo]

Jialat, system say I eligible for 0 tax relief

 

[blankies]

Should be RA and/or MA. Should not be OA.

But if hit FRS already how?

 

[blankies]

Jialat, system say I eligible for 0 tax relief

Sure or not. You working mum? Else very challenging to max out all tax relief leh. Still got the up coming MA top up?

 

[CheapColaCo]

Sure or not. You working mum? Else very challenging to max out all tax relief leh. Still got the up coming MA top up?

its says i reached the FRS amount?

 

[Tuckiereborn]

Should be RA and/or MA. Should not be OA.

Then can just draw out?

 

[Anjumara123]

Just wondering, for those here who are employed in their late 20s - mid 30s, do y'all do VCMA first or RSTU first?

 

[Slowdown]

Then can just draw out?

I am not too familiar. It really depend on a lot of factors. Most importantly is the age of the person and what scheme the person is under.

If I am to use MA as an example. You are paying for your parent medication at the local polyclinic. Rather than paying cash at the Polyclinic, you can ask Polyclinic to deduct from your parent Medisave Account. Then you replenish the balance using cash and enjoy tax relief. You can top up in advance if their MA has no money. The money needs to be spent anyway, be it via cash payment or MA topup. I myself is a regular patron of the Polyclinic. I did consider using this 'method' to get more tax relief for myself. Since I have RA topup to get tax relief, I decided not to use this 'route'.

If your parent (or yourself) is already exceeding the CPF Limit (e.g. meet FRS or even ERS), then such 'opportunity' are not meant for you. The scheme is designed to help senior save up for their retirement. To enjoy their children to contribute to their parent retirement.

 

[weng0202]

I only top up my OA to the C3A limit as I am more than 55 and working part time. Treat it as savings account offering 2.5% interest.

What is C3A limit?

 

[Lè Crayons]

This year top up to BHS 2026 is $3,500 right?

 

[weng0202]

This year top up to BHS 2026 is $3,500 right?

Yes

 

[jywy2005]

What is C3A limit?

Contribution to your 3 accounts - ordinary, special and Medisave. Think the limit is $37740 iirc

 

[weng0202]

Contribution to your 3 accounts - ordinary, special and Medisave. Think the limit is $37740 iirc

Ah I see.

 

[mcylo]

That is actually a very smart thing to do.

Father not working and hence no tax. Pass the money to children to top up CPF. Children enjoy tax relief. Then withdraw the CPF money as expenses. It is a good strategy.

Must be rich enuff then can.