CPF Account Value Thread 2024

[highsulphur]

instead of providing corporate insurance. some give u extra medisave to buy your own, e.g., ISP

that actually makes a lot of sense given we usually have overlap in coverage from our person ISP and company insurance.

 

[reddevil0728]

that actually makes a lot of sense given we usually have overlap in coverage from our person ISP and company insurance.

inline with MSO scheme.

https://www.psd.gov.sg/newsroom/media-releases/civil-service-reviews-medical-benefit/

 

[dgeralds]

I'm 58 and planning to top up my ERS to 426K on 1st Jan 2025.

OA 89.8
SA 297.3
MA 72.2
RA 340.7

Should I top up my FRS first with cash to get tax rebate, later top up balance ERS by either cash or CPF?

To get tax rebate, I have already topped up my CPF to limits in 2024 and will top up MA to 2025 limit on 1st Jan.

 

[BBCWatcher]

I'm above 58 and planning to top up my ERS to 426K on 1st Jan 2025.

If that's with cash then I'd wait until January 30. You can at least earn ~29 days more bank interest on your cash.

If you're planning to transfer SA dollars to RA then it'll be best to do that within the 1st half of January, before the CPF Board starts closing Special Accounts. January 1 works, of course.

OA 89.8
SA 297.3
MA 72.2
RA 340.7
Should I top up my FRS first with cash to get tax rebate, later top up balance ERS by either cash or CPF?

I don't think you can obtain tax relief with a cash top up to your RA. Your RA is already way above the 2025 Full Retirement Sum ($213,000). It seems doubtful that your RA has so much RA interest that you still have room below the FRS for tax relief purposes.

If you've got gobs of cash sitting in a 1% interest earning bank account, for example, then it'd probably be a good idea to use your cash first. OA earns 2.5% interest, and that obviously beats 1%.

But another option that might be even better is for a qualified family member (or family members) who happen to be under age 55 to transfer their OA dollars to your RA. Then you can return the favor (make cash top ups to their SAs) and/or even hand them cash. The reason is that they cannot withdraw OA dollars since they're under 55. But by doing something you already plan to do (add funds to your RA) they (and you) can effectively "liberate" their OA dollars (make them liquid). And that's not a bad thing, assuming they're going to do something reasonable like save and prudently invest those liberated dollars. Buying lottery tickets or tobacco would not be on the list of reasonable things to do.

To get tax rebate, I have already topped up my CPF to limits in 2024 and will top up MA to 2025 limit on 1st Jan.

Again, you shouldn't make a Voluntary Contribution to MA for tax relief on January 1 unless you're specifically trying to beat December's payroll cycle or a pending other deposit into your MA (such as an insurance claim that's still pending). If for example December's payroll cycle ordinarily gets credited to your CPF accounts on January 10 then make your Voluntary Contribution on January 8 (2 days in advance). That'll mean you'll earn 7 more days of bank interest on your cash, and that'd be a good thing. (You can send me half the extra interest you're now going to earn.)

 

[dgeralds]

If that's with cash then I'd wait until January 30. You can at least earn ~29 days more bank interest on your cash.

If you're planning to transfer SA dollars to RA then it'll be best to do that within the 1st half of January, before the CPF Board starts closing Special Accounts. January 1 works, of course.

I don't think you can obtain tax relief with a cash top up to your RA. Your RA is already way above the 2025 Full Retirement Sum ($213,000). It seems doubtful that your RA has so much RA interest that you still have room below the FRS for tax relief purposes.

If you've got gobs of cash sitting in a 1% interest earning bank account, for example, then it'd probably be a good idea to use your cash first. OA earns 2.5% interest, and that obviously beats 1%.

But another option that might be even better is for a qualified family member (or family members) who happen to be under age 55 to transfer their OA dollars to your RA. Then you can return the favor (make cash top ups to their SAs) and/or even hand them cash. The reason is that they cannot withdraw OA dollars since they're under 55. But by doing something you already plan to do (add funds to your RA) they (and you) can effectively "liberate" their OA dollars (make them liquid). And that's not a bad thing, assuming they're going to do something reasonable like save and prudently invest those liberated dollars. Buying lottery tickets or tobacco would not be on the list of reasonable things to do.

Again, you shouldn't make a Voluntary Contribution to MA for tax relief on January 1 unless you're specifically trying to beat December's payroll cycle or a pending other deposit into your MA (such as an insurance claim that's still pending). If for example December's payroll cycle ordinarily gets credited to your CPF accounts on January 10 then make your Voluntary Contribution on January 8 (2 days in advance). That'll mean you'll earn 7 more days of bank interest on your cash, and that'd be a good thing. (You can send me half the extra interest you're now going to earn.)

Noted BBCWatcher. I will action accordingly. Thank you very very much.

 

[highsulphur]

If that's with cash then I'd wait until January 30. You can at least earn ~29 days more bank interest on your cash.

If you're planning to transfer SA dollars to RA then it'll be best to do that within the 1st half of January, before the CPF Board starts closing Special Accounts. January 1 works, of course.

I don't think you can obtain tax relief with a cash top up to your RA. Your RA is already way above the 2025 Full Retirement Sum ($213,000). It seems doubtful that your RA has so much RA interest that you still have room below the FRS for tax relief purposes.

If you've got gobs of cash sitting in a 1% interest earning bank account, for example, then it'd probably be a good idea to use your cash first. OA earns 2.5% interest, and that obviously beats 1%.

But another option that might be even better is for a qualified family member (or family members) who happen to be under age 55 to transfer their OA dollars to your RA. Then you can return the favor (make cash top ups to their SAs) and/or even hand them cash. The reason is that they cannot withdraw OA dollars since they're under 55. But by doing something you already plan to do (add funds to your RA) they (and you) can effectively "liberate" their OA dollars (make them liquid). And that's not a bad thing, assuming they're going to do something reasonable like save and prudently invest those liberated dollars. Buying lottery tickets or tobacco would not be on the list of reasonable things to do.

Again, you shouldn't make a Voluntary Contribution to MA for tax relief on January 1 unless you're specifically trying to beat December's payroll cycle or a pending other deposit into your MA (such as an insurance claim that's still pending). If for example December's payroll cycle ordinarily gets credited to your CPF accounts on January 10 then make your Voluntary Contribution on January 8 (2 days in advance). That'll mean you'll earn 7 more days of bank interest on your cash, and that'd be a good thing. (You can send me half the extra interest you're now going to earn.)

Just don't cut it so close that you earn that 8 days of interest and miss out of the larger percentage of tax savings

 

[royalmix]

This mth, some of you have a "shock of your life" when MA exceeded BHS! You dun have opportunity to topup after premiums are deducted!

Be prepared for a "possible change/streamlining of process" next mth: Your MA now exceeds BHS, next mth it can still exceed current BHS. Maybe only those with MA exceeding BHS 2025 or their BHS will have excess "transferred" out.

You might still have room to topup but less to enjoy tax relief!

Let's see what happens next mth and any delay in SA closure or "surprise"?

No need too kancheong to transfer from SA to RA! You dunno what you will be missing? I know, "extra happiness"!

Cash is still king! At least for me, my money enjoying much more than OA and RA sometimes (eg > 6%pa for 5 mths, sometimes 2-3 mths, HYSA or equivalent)

 

[chiokcc]

Sharing :

 

[chiokcc]

More sharing :

 

[Froggyman]

This mth, some of you have a "shock of your life" when MA exceeded BHS! You dun have opportunity to topup after premiums are deducted!

Be prepared for a "possible change/streamlining of process" next mth: Your MA now exceeds BHS, next mth it can still exceed current BHS. Maybe only those with MA exceeding BHS 2025 or their BHS will have excess "transferred" out.

You might still have room to topup but less to enjoy tax relief!

Let's see what happens next mth and any delay in SA closure or "surprise"?

No need too kancheong to transfer from SA to RA! You dunno what you will be missing? I know, "extra happiness"!

Cash is still king! At least for me, my money enjoying much more than OA and RA sometimes (eg > 6%pa for 5 mths, sometimes 2-3 mths, HYSA or equivalent)

Hopefully the Govt will do a U - turn on the closure of SA account for those above age 55.

 

[highsulphur]

This mth, some of you have a "shock of your life" when MA exceeded BHS! You dun have opportunity to topup after premiums are deducted!

Be prepared for a "possible change/streamlining of process" next mth: Your MA now exceeds BHS, next mth it can still exceed current BHS. Maybe only those with MA exceeding BHS 2025 or their BHS will have excess "transferred" out.

You might still have room to topup but less to enjoy tax relief!

Let's see what happens next mth and any delay in SA closure or "surprise"?

No need too kancheong to transfer from SA to RA! You dunno what you will be missing? I know, "extra happiness"!

Cash is still king! At least for me, my money enjoying much more than OA and RA sometimes (eg > 6%pa for 5 mths, sometimes 2-3 mths, HYSA or equivalent)

No need to be so dramatic. MA has known to exceed the BHS ceiling before. It's a system flaw of cpf. Eventually a batch job will be run to transfer the excess out of MA. But it's not ideal since it prevents members from topping their MA if there is any deduction before the transfer. You all should write in to complain to CPF to force them to upgrade their system ASAP

 

[reddevil0728]

Hopefully the Govt will do a U - turn on the closure of SA account for those above age 55.

lol i think that 1 one way street

No need to be so dramatic. MA has known to exceed the BHS ceiling before. It's a system flaw of cpf. Eventually a batch job will be run to transfer the excess out of MA. But it's not ideal since it prevents members from topping their MA if there is any deduction before the transfer. You all should write in to complain to CPF to force them to upgrade their system ASAP

sometimes might be a policy decision though

 

[highsulphur]

lol i think that 1 one way street

sometimes might be a policy decision though

no it is probably not. It is called a ceiling for a reason and that's why MA overflows for salary credit when MA hits BHS. If that is the case, why is it different for other crediting? There should not be any inconsistency.

 

[reddevil0728]

no it is probably not. It is called a ceiling for a reason and that's why MA overflows for salary credit when MA hits BHS. If that is the case, why is it different for other crediting? There should not be any inconsistency.

because the nature of the credit is technically different

 

[The_Davis]

I'm 58 and planning to top up my ERS to 426K on 1st Jan 2025.

OA 89.8
SA 297.3
MA 72.2
RA 340.7

Should I top up my FRS first with cash to get tax rebate, later top up balance ERS by either cash or CPF?

To get tax rebate, I have already topped up my CPF to limits in 2024 and will top up MA to 2025 limit on 1st Jan.

I thought once hit 55, max BHS is freezes?

 

[The_Davis]

no it is probably not. It is called a ceiling for a reason and that's why MA overflows for salary credit when MA hits BHS. If that is the case, why is it different for other crediting? There should not be any inconsistency.

because the nature of the credit is technically different

That’s called a bug.
All bugs need to be squished

 

[badsector]

I thought once hit 55, max BHS is freezes?

should be age 65

 

[The_Davis]

should be age 65

Got indicate on CPf website?

I always thought cannot top up once reach 55

 

[BBCWatcher]

Got indicate on CPf website?
I always thought cannot top up once reach 55

https://www.cpf.gov.sg/service/article/what-is-the-basic-healthcare-sum

 

[reddevil0728]

That’s called a bug.
All bugs need to be squished

If it’s indeed a bug I agree. But if it is policy intent, then suck thumb.

Got indicate on CPf website?

I always thought cannot top up once reach 55

Guess you thought wrong…

Once CPF members reach age 65, their BHS will be fixed for the rest of their lives.

https://www.cpf.gov.sg/service/article/what-is-the-basic-healthcare-sum