Contribution to Parents CPF

[henrylbh]

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.

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If above 55 and under old scheme, monthly payout is minimum $297, I think, until whatever they have in RA is exhausted.

 

[henrylbh]

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 More can be withdrawn?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?

Why bother with how withdrawal is calculated and the duration?

If parents under old min sum scheme, all you need to know is whatever in their RA plus interest is paid in equal instalments over a period from time of first drawdown to age of 82. However, the min monthly payout is 297, until amount in RA is exhausted. It's up to them to decide when to commence drawdown and of course, the later the higher the payout, though not really significant.

 

[SBC]

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

I beg to differ on this statement. If the choice is with a endowment plan whose returns is around 3%, kids SA top is pretty a wise choice. 1st 60k at 5%. Is a good head start for those with kids.

I have planned this in mind. Have created their accounts recently but yet to execute.

 

[orange_sky]

I beg to differ on this statement. If the choice is with a endowment plan whose returns is around 3%, kids SA top is pretty a wise choice. 1st 60k at 5%. Is a good head start for those with kids.

I have planned this in mind. Have created their accounts recently but yet to execute.

Same here. Not sure whether to do a voluntarily top up to all 3 accounts or just to SA. And not sure how much to top up for the three kids

 

[SBC]

I will start with SA bah. Think any comfortable amount is good for the kids. But should not over stretch.

Beauty of 5% compounded interest.

 

[orange_sky]

I will start with SA bah. Think any comfortable amount is good for the kids. But should not over stretch.

Beauty of 5% compounded interest.

Problem with sa is that they can't touch it until 55

 

[linusz]

I guess you would top up using own bank to enjoy the tax relief.

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[SBC]

Happy problem. SA is hitting FRS next week. Haha.

 

[orange_sky]

Happy problem. SA is hitting FRS next week. Haha.

Congratulations. How old are you

 

[SBC]

Mid-40s. 1 kid more than you

 

[orange_sky]

Mid-40s. 1 kid more than you

Well done. I am already stressed with 3 children

 

[tornedo]

I guess you would top up using own bank to enjoy the tax relief.

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No tax relief for topping up children cpf account if not wrong.

 

[orange_sky]

No tax relief for topping up children cpf account if not wrong.

Yup no tax relief for children top up

 

[badsector]

do you guys top up now for 2017 relief or wait till 1st Jan 2017?

edit: nvm found the answer

 

[SBC]

Will start with parent RA top up. May be 1-2k. CNY is coming though.

 

[henrylbh]

I also for the last few week have been thinking very hard whether to top up my parent's RA by transferring 41k (FRS limit) or 121.5k (ERS limit) from my OA

My main concern is that I still have outstanding housing loan of 310k with 78 months to service.

Financial wise, I should as the amount in his RA would be earning at least 4% compared to the present loan interest rate which is unlikely to rise to above 4%. But somehow, there still some reservations

 

[cscs3]

do you guys top up now for 2017 relief or wait till 1st Jan 2017?

edit: nvm found the answer

Last day 31/DEC/2016.

 

[cscs3]

Problem with sa is that they can't touch it until 55

Don't think this is a problem if they have some spare money for day to day spending.
Interest rate is good and there is no reason to hold it in the bank vs CPF.

After retired. I gave money to my children to top up my own account. They get tax rebate and I get interest. Win win situation. More win is they use their own money to top up my account!

 

[henrylbh]

Anyone knows why my father was allowed to withdraw all his RA balance (about $4,821) at one go some years back? Before that he was getting monthly payout of $297.

 

[vince123123]

Not too familiar with CPF stuffs, but supposing I have a parent who is 70 years old this year. I would like to give a monthly allowance to this parent via contributing to the parent's CPF (RA?) and get tax relief at the same time. Would this fall under the $7k tax relief scheme and if so, can the 70 year old parent withdraw the money as and when he likes or are there certain conditions?