CPF Accounts Value Thread 2020

[BBCWatcher]

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

Amusing.

I cannot find an article in which the CPF Board wrote that RSTU Scheme top ups are not limited to the CPF Annual Limit, or for that matter any article in which the CPF Board explains that the CPF Annual Limit does not apply to the RSTU Scheme. That doesn't mean they haven't ever written that, but I just haven't found it. There are plenty of articles in which they explain what the RSTU limits actually are, such as this article. That's not quite what minamikaze asked for, though.

It's also easy to understand why the CPF Board's "CPF Annual Limit" term of art is confusing, because the CPF Annual Limit (uppercase) isn't, in fact, the annual limit on CPF contributions/top ups/deposits/whatever-they're-called. There are many contributions and top ups that can exceed the CPF Annual Limit per member -- most types, actually. Even the compulsory contributions alone can occasionally exceed the CPF Annual Limit. There's a reasonable argument that the "CPF Annual Limit" ought to be called something else. Here are some nominees:

Basic Annual Limit
Classic Annual Limit
Normal Annual Limit
Regular Annual Limit
Routine Annual Limit
Simple Annual Limit
Standard Annual Limit
Traditional Annual Limit
Typical Annual Limit
Usual Annual Limit

Variations are also possible using the word "Cap" instead of "Limit." Among these nominees, I think I like "Basic Annual Limit" best.

 

[BBCWatcher]

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."

And, expanding on that point, transfers are transfers.

However, there is a fair, reasonable argument that CPF members shouldn't have to learn that "contributions" (in plain English) are sometimes not "contributions" (in the CPFese language). It'd be nice if the CPF Board could reduce its reliance on what is effectively organization-specific jargon and terminology, and then when it does use particular terms its usage is compatible with standard, plain English comprehension.

 

[doody_]

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.

A succinct explanation.

 

[maple96]

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.

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 bro, u won first place, ahead of me, congrats! Spot on!

For someone like BBCWatcher who only can do WOT based on his own opinion without supporting his opinion with CPFB rules nor with links from CPFB website, it is no surprise that he shocked many with his comment that there is no official “article”, and continues to confuse forumers by using CPF official terms loosely and interchangeably, different from CPFB's intended meaning.

No wonder so many are so confused, including BBCWatcher

An expert at providing links like BBCWatcher, cannot provide links because he cannot find it or dunno how to find it

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?

Here is the official source: https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

I extract the key contents below:

The Retirement Sum Topping-Up (RSTU) Scheme helps you build up your own or your loved ones’ retirement savings through higher monthly payouts and/or extended payout duration.

You can top up via CPF transfer or cash to your own and/or your loved ones’ Special Accounts (SA) (for recipients below age 55) up to the current Full Retirement Sum (FRS), or Retirement Accounts (RA) (for recipients aged 55 and above), up to the current Enhanced Retirement Sum (ERS).

Cash top-ups

Cash top-ups can be made to any recipient. You can enjoy tax relief of up to $7,000 per calendar year if you are topping up for yourself and additional tax relief of up to $7,000 per calendar year if you are topping up for your parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings.

My further comments:

Be clear what u can topup vs what u can claim for tax relief.

If u need VC-3A or VC-MA limits, I can also provide the CPFB "article" links!

Looks like there are more rubbish in this thread than the other thread

 

[decibel.]

Hm.
CPF Annual Limit is currently $37740.
MA BHS is $60k.
I have $40209 in MA now.
My salary is > 6k - so I + employer contribute $2220 per month to CPF = $26640 per year. But this excludes bonuses, so let's give that $4k.

Essentially, this only allows me to contribute $7k before I hit the Annual Limit for this year.

Does the above sound right? If so, should I contribute this $7k into MA or SA? And why MA or SA first?

EDIT: I just found out that topping up SA (under RSTU) isn't subject to the Annual Limit. So does this mean that if I want to maximize my tax relief, I could contribute $7k into MA (so that I "just nice" hit the Annual Limit), AND contribute $7k into SA (to also enjoy the tax relief)?

Also, what happens if I over-contribute now in Jan? I would have lost 12 months of interest for the excess amount that CPF would refund me - correct?

Sorry for late response. Yes at least that's what I did. The only variable is the bonus amount which happen to fall within the limit.

Give some buffer should be ok. If not they'll refund you and take back the interest. You'll lose the opportunity cost with the excess.

SA top up max 7k tax relief. You can put more if you want up to FRS but no tax relief. Once you max FRS no more this option.

Sent from HUAWEI VOG-L29 using GAGT

 

[doody_]

We shouldn't blame BBCWatcher. Most Singaporeans can't even figure out fully how the CPF scheme works, how can a foreigner do it?

 

[seowyian]

We shouldn't blame BBCWatcher. Most Singaporeans can't even figure out fully how the CPF scheme works, how can a foreigner do it?

yeah, give BBCW a break. He's a usually sensible resource for a wide range of macro topics and details on MM, learnt a lot from his posts (as well as from many others here).

 

[cscs3]

We shouldn't blame BBCWatcher. Most Singaporeans can't even figure out fully how the CPF scheme works, how can a foreigner do it?

You will be surprised.
Most Singaporean take it as part of the working life so never want to find out or read out more. This is the main reason. Actually most answer at most is one phone call away.

 

[henrylbh]

We shouldn't blame BBCWatcher. Most Singaporeans can't even figure out fully how the CPF scheme works, how can a foreigner do it?

How you get the impression that 'we' are blaming him? What is meant by blame?

 

[maple96]

Blame yourself if u rely/trust a forumer's opinion without doing your own due diligence.

Blame yoursef if u rely on fake news without doing your own due diligence.

Flame those who spread fake news or endorse fake news

If your money is at stake, always seek final clarifications with the authorities.

Read this other thread below, where someone post a fake news, and one forumer after another forumer continue to endorse or spread the fake news. I am going to stop it!

https://forums.hardwarezone.com.sg/124579895-post13.html

 

[cal3135]

Topped MA to BHS for tax relief ... next on plan SRS ...

🍎xsmax HardwareZone Forums app

 

[malthead]

Topped MA to BHS for tax relief ... next on plan SRS ...

🍎xsmax HardwareZone Forums app

Nice one.

I top up for the first time this year but realize that I might get a refund next year as I'm likely to hit my contribution cap this year

 

[AvatarViper]

 

[SKenny]

Nice.

I have only just above $100k in my SA.

Spoiler

 

[polyglob]

Nice.

I have only just above $100k in my SA.

Spoiler

Double comma club. Power bro!

 

[cal3135]

That’s a big cake

Nice.
I have only just above $100k in my SA.

Spoiler

🍎xsmax HardwareZone Forums app

 

[ocs_woodlands]

Nice.

I have only just above $100k in my SA.

Spoiler

You wait ah..... I go home borrow my daughter's protractor to measure the angle of the orange and green sections

 

[Dividends]

Nice.

I have only just above $100k in my SA.

Spoiler

Two commas spotted.

 

[luei74]

Nice.

I have only just above $100k in my SA.

Spoiler

OA ~1060K!!!!!

Sent from Xiaomi MI MAX 3 using GAGT

 

[highsulphur]

When I grow up I want to be like uncle Kenny