Contribution to Parents CPF

[badsector]

BBCWatcher, those kids who have received a headstart with a $161k topup to their SA. They are destined to have AT LEAST $1.49 million dollars by 55 years old (assuming they remain jobless with no further CPF contributions from 1 year old to 55 years old and the bonus CPF interest rate of 1% to first $40k in SA).

Seems grossly unfair to the average adults who have to work hard for their retirement.

dun worry. garment not so tootpig lah.
got cpf annual limit.

 

[SBC]

161k itself is a high limit. Anyway, is also a moving target.

Those guys who could not afford this figure should target any comfortable amount up to 60k. cos first 60k has 1% extra interest.

Yet to start top top up for kids yet.

 

[LiteHouse]

dun worry. garment not so tootpig lah.
got cpf annual limit.

There is NO annual limit if the $161k was bestowed to the baby/kid via a nomination. This of course will mean that the nominator (giver) has passed away.

 

[kingkongikiss]

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[BBCWatcher]

There is NO annual limit if the $161k was bestowed to the baby/kid via a nomination.

Contributions under the Retirement Sum Topping Up Scheme (RSTU) are not counted toward the CPF Annual Limit ($37,740). The only RSTU limit is that, before age 55, you can't top up any more once the SA reaches the Full Retirement Sum ($166,000 in 2017).

You can top up anybody's CPF account -- anybody who is a citizen or permanent resident. (OK, babies aren't born PRs. A PR application for a newborn takes time to be approved, if it's approved.) It's only the tax relief that is limited to certain relatives, and those certain relatives do not include children, grandchildren, nieces, and nephews (as examples).

Let's suppose a Singaporean baby is born in 2017. A generous grandmother wants to be generous. She can contribute $166,000 to the newborn's CPF Special Account, all in one go. She can also contribute $37,740 (CPF Annual Limit) to the newborn's CPF Medisave Account, for a total baby gift (to CPF) of $203,740 in 2017. That lucky baby also gets a $4,000 Medisave grant from the government, so the baby starts life with $207,740 in CPF. In 2018 that grandmother can contribute a little bit more to the baby's Medisave account, up to the Basic Healthcare Sum for 2018. Then she can contribute the balance of that year's $37,740 limit to the baby's Ordinary Account, if desired.

That'd be a nice way to start life, wouldn't it?

 

[kehyi4]

The whole SA gets rolled over to the Retirement Account at age 55, as far as I know.

erm, no.

Only the amount up to FRS will be transferred at 55 into RA, taken from SA first, then OA if necessary. The rest stays in SA or OA as the case may be.

 

[elnewbie]

The annual limit only applies to salary contributions, not topping up.

dun worry. garment not so tootpig lah.
got cpf annual limit.

 

[cscs3]

Yes, but some tax relief conditions apply, notably that the recipient cannot have too much income. But if, for example, you're taking time off for a pregnancy and raising a child, that year (or years) would be a great time for a qualified relative who wants to help you out anyway to make that tax-advantaged contribution to your CPF account.

So far I did that to both my wife and myself. Ie 14K each year tax rebate. My wife not working.

 

[tornedo]

Last week i went Tampines cpf and asked the officer whether can contribute to my children SA (by transfering from my OA account). Somehow officer said cannot.

Anyone can confirm this again? I can't recalled clearly if VC (through cash) is ok.

 

[SBC]

Rule of thumb: by allowing such transfer, the problem will be pushed to next gen. Who is going to look after you if your kid abandon you?

Quick answer is no no.

Jus like topping up to kids CPF has no tax relief. Very obvious.

 

[henrylbh]

Last week i went Tampines cpf and asked the officer whether can contribute to my children SA (by transfering from my OA account). Somehow officer said cannot.

Anyone can confirm this again? I can't recalled clearly if VC (through cash) is ok.

Either too rich or too dumb to think of transferring OA to kid's SA. Have you met the min sum for FRS.

 

[orange_sky]

Last week i went Tampines cpf and asked the officer whether can contribute to my children SA (by transfering from my OA account). Somehow officer said cannot.

Anyone can confirm this again? I can't recalled clearly if VC (through cash) is ok.

Has to be cash top up

 

[tornedo]

Has to be cash top up

I see, must be cash top up. Was thinking to put their angpow money for them into SP that accumulated over few years. Putting in bank doesnt give much interest.

 

[linusz]

Hi. For monthly withdrawals above 55yo. Can the amount be varied higher. How is it calculated. Was thinking of topping up to parent ra but the withdrawn amount is too low

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[BBCWatcher]

Hi. For monthly withdrawals above 55yo. Can the amount be varied higher.

I assume you're referring to CPF LIFE annuity payouts. Yes, in at least two ways:

1. The CPF LIFE Standard Plan has a slightly higher monthly payout than the Basic Plan. The disadvantage is that less money is left to heirs, but that's a disadvantage for heirs, not for account holders.

2. Wait to start monthly payouts. For example, a member could continue working (full or part time) until age 68, earning a bit of income along the way (with additional CPF contributions), then start collecting CPF LIFE.

 

[linusz]

I assume you're referring to CPF LIFE annuity payouts. Yes, in at least two ways:

1. The CPF LIFE Standard Plan has a slightly higher monthly payout than the Basic Plan. The disadvantage is that less money is left to heirs, but that's a disadvantage for heirs, not for account holders.

2. Wait to start monthly payouts. For example, a member could continue working (full or part time) until age 68, earning a bit of income along the way (with additional CPF contributions), then start collecting CPF LIFE.

Thanks. Was looking at withdrawing from parents RA accounts instead. Confused on how the amount is calculated for withdrawal. Does it mean the higher the ra. More can be withdrawn? What is the duration to withdraw till? Average life expectancy?

 

[BBCWatcher]

Thanks. Was looking at withdrawing from parents RA accounts instead. Confused on how the amount is calculated for withdrawal.

RA withdrawals are all pretty well explained here.

Do they need the money, now? If not, I'd "let it ride." I don't think it's much more complicated than that.

 

[SBC]

Probably the most not-meant-to-transparent annuity plan despite some changes here and there.

 

[linusz]

RA withdrawals are all pretty well explained here.

Do they need the money, now? If not, I'd "let it ride." I don't think it's much more complicated than that.

They are past 55 with 0 in oa and sa which my understanding is emptied into their ra at 55.

They don't really need the money. I think it's a good way to accrue interest. And to have tax relief off the contributions. But if the withdrawal is too slow also don't quite make sense in terms cash flow.

Sent from Samsung SM-N9005 using GAGT

 

[oceanicmanta]

They are past 55 with 0 in oa and sa which my understanding is emptied into their ra at 55.

They don't really need the money. I think it's a good way to accrue interest. And to have tax relief off the contributions. But if the withdrawal is too slow also don't quite make sense in terms cash flow.

Sent from Samsung SM-N9005 using GAGT

if on CPF LIfe liao bo bian.

u can use the CPF Life Payout Calculator to calculate the monthly withdrawal based on either the Basic, Standard or Enhanced Plans.

If RA amount below CPF Life threshold, then different story.