CPF Account Value Thread 2025

[chiokcc]

What ambiguity do you think you're trying to avoid?

The Matched Retirement Savings Scheme works no matter who makes the cash top up. It's strictly based on whether the eligible member's CPF Retirement Account receives a cash top up. Even Mr. Michael Mouse could make the cash top up under the MRSS — the identity of the donor doesn't matter.

If you are trying to qualify for tax relief then yes, you should make the cash top up.

Please note that MRSS and tax relief limits are not CPF limits. The only limit for CPF Retirement Accounts is the Enhanced Retirement Sum. Tax relief and matching funds are nice, but top ups beyond those limits may still be the next best available deal.

Thanks for the response ... I think I wasn't clear in my query .... maybe quoting examples would have been better ...

Scenario 1:

If someone has 2 surviving parents, both of whom has not hit the max limit in their RA and age > 70.
A child top-up each of their RA with $4k each on 01 Jan 2025. This means the child has tried to max up the $8k tax deductible applicable to the child.
Does the above means that the with this new MRSS thingy, the child is only entitled to $2k+$2k of tax deductible due to the $2k each matching by Govt?
If the above is true, this means the child needs to top-up another $2k to each parent (total $4k) in order to enjoy the full $8k tax deductible entitlement?

End of Scenario 1 -----

Scenario 2:

If someone has only 1 surviving parent, of whom has not hit the max limit in parent's RA and age > 70.
A child top-up this parent's RA with $8k each on 01 Jan 2025. This means the child has tried to max up the $8k tax deductible applicable to the child.
Does the above means that the with this new MRSS thingy, the child is only entitled to $6k of tax deductible due to the $2k matching by Govt?
If the above is true, this means the child needs to top-up another $2k to the surviving parent in order to enjoy the full $8k tax deductible entitlement?

End of Scenario 2 -----

 

[BBCWatcher]

Thanks for the response ... I think I wasn't clear in my query .... maybe quoting examples would have been better ...
Scenario 1:
If someone has 2 surviving parents, both of whom has not hit the max limit in their RA and age > 70.

The maximum RA limit is the Enhanced Retirement Sum. I think you mean in this example that neither parent has reached the Basic Retirement Sum and that both otherwise qualify for the Matched Retirement Savings Scheme (MRSS).

A child top-up each of their RA with $4k each on 01 Jan 2025. This means the child has tried to max up the $8k tax deductible applicable to the child.
Does the above means that the with this new MRSS thingy, the child is only entitled to $2k+$2k of tax deductible due to the $2k each matching by Govt?
If the above is true, this means the child needs to top-up another $2k to each parent (total $4k) in order to enjoy the full $8k tax deductible entitlement?

The CPF Board publishes the answer on their MRSS landing page as the second FAQ (frequently asked question). Here’s the direct link to that FAQ. The MRSS is evaluated first (that’s always more valuable if available), then tax relief is evaluated after/above any MRSS dollars. In your example the child receives $2K+$2K ($4K total) of tax relief since the first $2K+$2K is eligible for the MRSS. If the child wants more tax relief (and otherwise qualifies) then the child could top up another $4K. That could be $4K to the mother and $0K to the father or any split. It could also be more than $4K additional. That’s only the tax relief limit, not the RA limit.

I mention that you’re not required to split dollars equally between parents because that might seem sensible, but often it isn’t. Parents rarely have the same RA balances, and even if they did women (on average) live longer and have slightly greater longevity risk. Or parents may have different health conditions, for example a mother might be in poor health while a father might be running marathons. I wouldn’t assume that an even split is the correct split. It depends on the situation. The MRSS rules require a $2K+$2K split to max out MRSS dollars for the year, but the tax relief rules don’t require any particular split. So it could be for example $2K to Parent A (for the MRSS) and $10K+ to Parent B (for the MRSS, $8K of tax relief, and even more dollars in that parent’s RA). Also, the $8K per year tax relief limit is per donor. Another child could add another $8K (or more) split between parents in any fashion, and that child could qualify for tax relief. (The tax relief limit is based on whether the recipient ‘s RA has reached the Full Retirement Sum. Dollars above the FRS do not qualify for tax relief.)

Scenario 2:
If someone has only 1 surviving parent, of whom has not hit the max limit in parent's RA and age > 70.
A child top-up this parent's RA with $8k each on 01 Jan 2025. This means the child has tried to max up the $8k tax deductible applicable to the child.
Does the above means that the with this new MRSS thingy, the child is only entitled to $6k of tax deductible due to the $2k matching by Govt?

Correct, with the same caveat above about “max limit.”

 

[chiokcc]

OK thanks again!

Guess I need to fork out some more $2k's for top-ups

 

[happening]

On the topic of MRSS. If 2 siblings both make $8k cash top up for the same parent. Does it means the one who make the top up first will get $6k tax relief whereas the one who did later will get the full $8k?

 

[BBCWatcher]

On the topic of MRSS. If 2 siblings both make $8k cash top up for the same parent. Does it means the one who make the top up first will get $6k tax relief whereas the one who did later will get the full $8k?

Yes. That's a very reasonable interpretation of the CPF Board's (and IRAS's) published information.

If these hypothetical siblings are concerned about how the rules work in this instance then they can (first) each deposit $1,000 into their parent's CPF Retirement Account. Then they can subsequently deposit more funds for tax relief. Or, as I keep repeating, you'll get every penny of tax relief when you deposit $20,000 (for example). You're always going to get $8,000 of tax relief (if otherwise eligible) if you deposit at least $10,000. Tax relief and MRSS limits are not the maximum deposit limits. Only the Enhanced Retirement Sum is, and only for RA.

If you want to support your parent(s), support your parents (and/or grandparents). You're probably legally required to support them anyway if they need the support. MRSS and tax relief benefits are obviously nice bonuses, but they shouldn't limit how much support you provide. Metaphorically, if you go to the Apple store and see 1 new iPhone 16 on sale for $100 and another 3 new iPhones on sale for $200, you shouldn't stop buying iPhones after the first iPhone merely because the next 3 cost more. The only relevant question is whether the next deal on the table (that you're in a position to take) is still a good deal or not. Not whether the previous deal was better.

 

[ctan84]

Just to check for those who did transfers from your CPF OA to spouse's account b4, need to submit any forms in advance b4 it can be done or just login to transfer can liao?

 

[BBCWatcher]

Just to check for those who did transfers from your CPF OA to spouse's account b4, need to submit any forms in advance b4 it can be done or just login to transfer can liao?

The first time you'll probably need to upload evidence of the legal marriage (a marriage certificate). And it'll take a few days for the CPF Board to review that. So if you're trying to beat an end of February deadline, do it right now. Even if it's just $1. The second and subsequent times the transfer is quicker though not immediate.

 

[ctan84]

The first time you'll probably need to upload evidence of the legal marriage (a marriage certificate). And it'll take a few days for the CPF Board to review that. So if you're trying to beat an end of February deadline, do it right now. Even if it's just $1. The second and subsequent times the transfer is quicker though not immediate.

I've been giving her money to top up my RA so that she can get the tax benefits and so far its been working, so I assume CPF already knew our marriage status without me uploading the cert right?

 

[hwmook]

I've been giving her money to top up my RA so that she can get the tax benefits and so far its been working, so I assume CPF already knew our marriage status without me uploading the cert right?

go singpass and tap family. Gov know your marriage status if you registered your marriage in Singapore.

 

[BBCWatcher]

I've been giving her money to top up my RA so that she can get the tax benefits and so far its been working, so I assume CPF already knew our marriage status without me uploading the cert right?

Yes, in that case you're all set.

go singpass and tap family. Gov know your marriage status if you registered your marriage in Singapore.

Yes, a digital marriage record works if the government has it.

 

[chiokcc]

OK thanks again!

Guess I need to fork out some more $2k's for top-ups

I have top-up parent's MRSS $2k, any idea when the matching from government comes in??

 

[BBCWatcher]

I have top-up parent's MRSS $2k, any idea when the matching from government comes in??

The answer is on the MRSS’s education page:

At the end of each year, the total amount of cash top-ups will be computed, and the matching grant will be credited by the first quarter of the following year.

In other words, the answer is on or before March 31, 2026, for top ups credited in 2025.

 

[chiokcc]

The answer is on the MRSS’s education page:

At the end of each year, the total amount of cash top-ups will be computed, and the matching grant will be credited by the first quarter of the following year.

In other words, the answer is on or before March 31, 2026, for top ups credited in 2025.

Thanks again ... that's a long time ....

I can imagine if topping up in 2025, and in the unfortunate situation where the recipients pass away, then no matching payout .....

 

[BBCWatcher]

I can imagine if topping up in 2025, and in the unfortunate situation where the recipients pass away, then no matching payout .....

The CPF Board addresses that scenario here. In that event the matching grant is still credited and will be paid to the late member's CPF nominee(s).

 

[chiokcc]

Thanks @BBCWatcher for answering all my doubts and queries ......

 

[Senfai]

Hello, newbie to the CPF system.

Is the general consensus that it is worthwhile to top up with cash for tax relief?

 

[ZinY]

go singpass and tap family. Gov know your marriage status if you registered your marriage in Singapore.

How about Siblings?
Does the government already know we have the same parents?
I am asking regarding tax relief for CPF top-up to a sibling.

 

[reddevil0728]

Hello, newbie to the CPF system.

Is the general consensus that it is worthwhile to top up with cash for tax relief?

Diff people circumstances different.

but in general, you can say that most people wouldn’t do better off getting returns from liquid cash better than the tax savings you get from topping up + the interest.

So depends on what type of person you are.

but for you to ask such a question, it’s more likely than not that you are better off topping up.

 

[BBCWatcher]

How about Siblings?
Does the government already know we have the same parents?

Maybe, maybe not.

CPF’s online top up form asks you what your relationship is to the recipient. If you need to provide evidence of the relationship you’ll be prompted for it.

 

[hwmook]

How about Siblings?
Does the government already know we have the same parents?
I am asking regarding tax relief for CPF top-up to a sibling.

It depend on whether your parents marriage is registered in Singapore, your siblings and your birth are registered in Singapore. If everything is done in Singapore and you are all born in Singapore then yes, government likely have all this information. Like others mentioned, they will ask if they don't have this information.