CPF Accounts Value Thread 2020

[maple96]

There's no rule regarding topups in the formation of the RA.

.

This is fake news!

 

[JuniorLion]

There's no rule regarding topups in the formation of the RA. CPFB simply takes the entire FRS from SA, and if there is not enough the rest will come from OA.

Is "CPFB simply takes the entire FRS from SA, and if there is not enough the rest will come from OA." a rule or not a rule?

 

[BBCWatcher]

Where can I find the official article which says that contributing to SA (under RSTU - 7k per year) is not computed under the Annual Limit?

I'm not sure you can since you're asking for an article that describes the existence of a rule that doesn't exist. To my knowledge there's also no article that says that Retirement Sum Topping-Up (RSTU) Scheme contributions must fit within the Basic Healthcare Sum (BHS). The BHS limit doesn't apply to the RSTU Scheme either.

However, the CPF Board does explain that you can check any recipient's (including your own) RSTU Scheme limit by logging onto your CPF account and selecting "My Messages."

Is there any good reason you can think of why you wouldn't trust the RSTU Scheme limit readout displayed in your (or your recipient's) online CPF account?

 

[cal3135]

Hi, these are diff schemes but no explicit faq on your question. U may consider call cpf or make own VC to see the result. I had done VC when in doubts.. works for me.

This is your current VC limit. U may do a cash RSTU but will see no change in this limit. Next with a VC, u will noticed a reduction on this limit.

Where can I find the official article which says that contributing to SA (under RSTU - 7k per year) is not computed under the Annual Limit?

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[minamikaze]

Thank you!
I mean, I just felt that it was weird that this is not covered explicitly in a guide or FAQ, don't you think?

Hi, these are diff schemes but no explicit faq on your question. U may consider call cpf or make own VC to see the result. I had done VC when in doubts.. works for me.

This is your current VC limit. U may do a cash RSTU but will see no change in this limit. Next with a VC, u will noticed a reduction on this limit.

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[cal3135]

Hi, not surprise as the whole cpf mechanism is not simple for common folks. I had called cpf numerous times or VC when in doubt.
Just get to understand more on HDB CPF REFUND recently

Thank you!
I mean, I just felt that it was weird that this is not covered explicitly in a guide or FAQ, don't you think?

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[cal3135]

This the rule buddy..

Is "CPFB simply takes the entire FRS from SA, and if there is not enough the rest will come from OA." a rule or not a rule?

🍎xsmax HardwareZone Forums app

 

[BBCWatcher]

Hi, these are diff schemes but no explicit faq on your question....

Your top up limit per the RSTU Scheme will be displayed under "My Messages" in your online account. You don't have to try to guess from a different scheme or even call up the CPF Board. Go ahead and take a look. It'll be there at least if you can still make a top up.

For example, for a CPF member under age 55 who hasn't reached the RSTU Scheme top up limit, it'll look like this and probably be right at the top of "My Messages":

Retirement

Retirement Sum Topping-Up Scheme

You can use cash to top up your own and/or your loved ones’ retirement savings.

You and/or your loved ones can top up the following amount to your Special Account (SA):
- Up to $123,456.78 (Top-Up Limit)

Up to $7,000 of cash top-ups (per giver) are eligible for tax relief.

Find out how you can top up your SA today!

 

[minamikaze]

I'm not sure you can since you're asking for an article that describes the existence of a rule that doesn't exist. To my knowledge there's also no article that says that Retirement Sum Topping-Up (RSTU) Scheme contributions must fit within the Basic Healthcare Sum (BHS). The BHS limit doesn't apply to the RSTU Scheme either.

However, the CPF Board does explain that you can check any recipient's (including your own) RSTU Scheme limit by logging onto your CPF account and selecting "My Messages."

Is there any good reason you can think of why you wouldn't trust the RSTU Scheme limit readout displayed in your (or your recipient's) online CPF account?

I just didn't know that I could check it there
And I just thought this should have been stated somewhere in an article or FAQ - the fact that it isn't, made me worry that I had to take the line ("The maximum amount of mandatory and voluntary contributions that a person (employee or self-employed person) can make in a calendar year is subject to the CPF Annual Limit. From 2016, the CPF Annual Limit is $37,740") literally, because technically RSTU = voluntary contribution to CPF SA, right?

 

[henrylbh]

There's no rule regarding topups in the formation of the RA.

This is fake news!

I believe the statement by itself is definitely not what he has in mind or all that he knows

 

[henrylbh]

Where can I find the official article which says that contributing to SA (under RSTU - 7k per year) is not computed under the Annual Limit?

CPF Annual Limit refers to mandatory and voluntary contributions only.

RSTU is not voluntary contribution and the limit is prevailing FRS for those below 55 and ERS for 55 and above. 7k refers to limit on tax relief for RSTU to SA/RA to prevailing FRS.

 

[henrylbh]

And I just thought this should have been stated somewhere in an article or FAQ - the fact that it isn't, made me worry that I had to take the line ("The maximum amount of mandatory and voluntary contributions that a person (employee or self-employed person) can make in a calendar year is subject to the CPF Annual Limit. From 2016, the CPF Annual Limit is $37,740") literally, because technically RSTU = voluntary contribution to CPF SA, right?

FAQ is quite clear. Only readers read too much into each statement and got confused. Some use the word contributions loosely. For example, topping up is not same as voluntary contribution, though most would just refer it as simply contribution to CPF.

 

[crimsontactics]

I just didn't know that I could check it there
And I just thought this should have been stated somewhere in an article or FAQ - the fact that it isn't, made me worry that I had to take the line ("The maximum amount of mandatory and voluntary contributions that a person (employee or self-employed person) can make in a calendar year is subject to the CPF Annual Limit. From 2016, the CPF Annual Limit is $37,740") literally, because technically RSTU = voluntary contribution to CPF SA, right?

To put it simply, you can do both RSTU and VC within the same year.

Assuming your CPF is currently totally empty.

RSTU 181k
VC 37740

So your SA by year's end would be around 190k+

Sent from Samsung SM-N960F using GAGT

 

[minamikaze]

FAQ is quite clear. Only readers read too much into each statement and got confused. Some use the word contributions loosely. For example, topping up is not same as voluntary contribution, though most would just refer it as simply contribution to CPF.

Well, in English, I am technically "voluntarily contributing" to my CPF SA - it is by no means compulsory, and it is also a contribution.

So for CPF SA top-ups to NOT be considered under the Annual Limit - which is defined by CPF as "The maximum amount of mandatory and voluntary contributions that a person (employee or self-employed person) can make in a calendar year is subject to the CPF Annual Limit. " was just plain confusing to me.

But it's good to hear that the two are separate though - I'll go ahead and make the $7k contribution to SA (+ a little to MA) without worrying about hitting the Annual Limit then

 

[cal3135]

Knowledge is power

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[BBCWatcher]

Well, in English, I am technically "voluntarily contributing" to my CPF SA - it is by no means compulsory, and it is also a contribution.

Unfortunately, the CPF Board uses their term of art "Voluntary Contribution(s)" (usually uppercase V, uppercase C, and often abbreviated "VC") to refer to a couple specific types of contributions, not all voluntary contributions (per plain English standards of comprehension). Yes, this "VC" terminology is confusing, stipulated.

The CPF Board could conceivably use different words -- maybe something like "Traditional Contributions" and "Special Contributions"? -- to provide greater clarity and avoid some understandable confusion. Regardless, we deal with the way the CPF Board uses language and terminology today. It is what it is.

 

[minamikaze]

Unfortunately, the CPF Board uses their term of art "Voluntary Contribution(s)" (usually uppercase V, uppercase C, and often abbreviated "VC") to refer to a couple specific types of contributions, not all voluntary contributions (per plain English standards of comprehension). Yes, this "VC" terminology is confusing, stipulated.

The CPF Board could conceivably use different words -- maybe something like "Traditional Contributions" and "Special Contributions"? -- to provide greater clarity and avoid some understandable confusion. Regardless, we deal with the way the CPF Board uses language and terminology today. It is what it is.

Yeah, it is what it is
Anyway, I have made a feedback for them to add it to the FAQ in view of this possible confusion with the terminology.

 

[doody_]

Where can I find the official article which says that contributing to SA (under RSTU - 7k per year) is not computed under the Annual Limit?

Oh, there is an official article on this. You better get BBCWatcher to link you, he's the expert at providing links. I was shocked he said there's no official article

 

[doody_]

CPF Annual Limit refers to mandatory and voluntary contributions only.

RSTU is not voluntary contribution and the limit is prevailing FRS for those below 55 and ERS for 55 and above. 7k refers to limit on tax relief for RSTU to SA/RA to prevailing FRS.

It would be clearer if they called it "Voluntary Contributions (VC)". CPF is clear that there's only 2 types of VC. Stuff like RSTU is not considered VC even though it's a voluntary contribution

 

[seowyian]

To put it simply, you can do both RSTU and VC within the same year.

Assuming your CPF is currently totally empty.

RSTU 181k
VC 37740

So your SA by year's end would be around 190k+

Sent from Samsung SM-N960F using GAGT

To add to henry and crimsontactics' info, this is what one CPF officer once told me:
"contribution is contribution, topup is topup, the two are not the same thing."

Broadly:-

Before 55yrs
voluntary contribution (VC) has annual limit = $37740 - (mandatory contribution for the year).

topup has no annual limit, but has lifetime limit = FRS prevailing for the year eg this year topup limit = $181K. (Next year limit will become next year's FRS, whatever that is.)


After 55yrs,
you can continue to VC, up to annual limit.

you can't topup anymore to SA. You can topup to RA instead. Lifetime limit = ERS prevailing for the year (similar to topup to SA).



before and after 55yrs, within same year, you can do both topup + VC, each to their respective limits.