CPF Accounts Value Thread 2022

[rizhal]

What are the conditions for me to enjoy tax relief?​

From 1 January 2022, you can enjoy annual tax relief of:

• up to $8,000 (previously $7,000) when you top up to your own Special/Retirement Account and MediSave Account*; and
• an additional tax relief of up to $8,000 (previously $7,000) when you top up your loved ones’ Special/Retirement Account and MediSave Account.

 

[BBCWatcher]

My spouse's payroll cycle tends to hit either on the last day of the month or first, and sure enough she can't beat it this morning (January 1). So we don't have anything to do yet. She'll add funds on January 29, but she can't squeeze in a full $8,000 this year. (Happy problem to have.) I can add $3,000 to MA, but I can wait at least a week and still beat the payroll.

 

[BBCWatcher]

If I topup my MA to 66k, can I withdraw the topup money 3k from OA in future?

Effectively yes if your Special Account has reached the Full Retirement Sum. That's because the portion of your compulsory contributions allocated to MA will instead bounce to your OA. So will MA interest for the year if you keep your MA at $66,000 on December 31, 2022.

 

[chiokcc]

If I topup my MA to 66k, can I withdraw the topup money 3k from OA in future?

I see the topping up from 63k to 66k as a means to have additional income tax rebate, and the higher interest in CPF does not hurt

 

[sg_lancelot]

31 yrs old.
18k used in housing.

 

[RedsYWNA]

Endowus returns since Dec'20: $13.7k.

Cpf interest (all-in for 2021): $11.5k.

Don't know if Endowus can continue to outpace for 2022 or not....haha

 

[BBCWatcher]

Just to complete the math, if you add $3,000 to your MA this month and raise it to the BHS ($66,000), and if you never withdraw from it (someone else pays your MediShield Life, CareShield Life, and Integrated Shield premiums) then you'll earn 4% interest on $63,000 for one month and 4% on $66,000 for 11 months. That equals $2,520. So if your SA has reached the FRS then you get the lion's share of your $3,000 bouncing into your OA on December 31, 2022. And you can get tax relief on the $3,000. And that's not even counting the compulsory contributions -- the MA portion of those bounces into your OA too. So if you want more OA inflow (for housing as a notable example) then having MA=BHS and SA>=FRS works really great.

 

[BBCWatcher]

31 yrs old.
18k used in housing.

Nice! If applicable, is your spouse/partner roughly similar? Or at least collecting maximum bonus interest?

One thing you should consider doing if he/she is below the FRS is to transfer some OA dollars to his/her SA. After collecting available cash top up tax relief, though, if near the FRS. It also depends on how much housing buffer you want to keep in your OA. For example, if you're carrying the full mortgage of $2,000/month then even a big buffer of 24 months would still allow some OA dollars for transfer.

 

[chiokcc]

31 yrs old.
18k used in housing.

Wow, you really fast ... I dun think I have this much at age 31 ....

 

[JuniorLion]

We need more 21-30 years old big cannon fairies to come show their 600k cpf balances.

Show away!

 

[item2sell]

I just checked my CPF and realised that the MA interest is accumulated within the new $66k-limited MA instead of overflowing to the SA/OA.

Hence, the $3k top-up hack for MA on 1 Jan does not fully work. Those who hit already $63k will see about $65.5k in the MA, which only allows about $0.5k of top-up for a tax deduction in 2023.

My interest this year is $19k+

nope. I see MA cap at 63k. Then overflow 1k to OA

 

[andyhtc]

nope. I see MA cap at 63k. Then overflow 1k to OA

It was a pre-adjusted figure as I logged on too early to check. Now it shows $63k after moving the interest into OA. I should see $66k in my MA in 1-2 days since I topped up today. In a few days, my Dec CPF contributions will also come in. With CPF contributions + CPF interest + OA refund + MA top-up, I hope to hit an overall $100k increase per year for the next 5 years

 

[bladez87]

I am done topping up my own MA, and parents' RA .....

Happy 2022 everyone!!

So fast?
Why top up parents ra?

 

[ocs_woodlands]

31 yrs old.
18k used in housing.

31yo, SA> FRS.... you have gotta good future ahead. now just let time do its magic

 

[Mephist0pheLes]

like this can?

 

[Strained]

like this can?

uncle, you how old already?

 

[rokawa2]

31 yrs old.
18k used in housing.

wah chilling.
Would this mean a pretty low Net Investment Assets to Net Worth Ratio unless a high flyer.

 

[BBCWatcher]

wah chilling.
Would this mean a pretty low Net Investment Assets to Net Worth Ratio unless a high flyer.

If I understand you correctly, I think you're making a big assumption that isn't supported by the available facts. But what do you mean?

One straightforward way to get the balances you see is to work and earn a decent (not necessarily high flying) paycheck, make monthly OA to SA transfers (of many or all OA dollars), make some Voluntary Contributions to MediSave (with tax relief) and/or cash top ups to SA (with tax relief), and pay mostly cash for a housing down payment -- perhaps with a little help from a generous family member and/or modest bequest. It's just basic application of the rules available, and of course working and earning a living. And there's nothing precluding additional saving/investing outside CPF.

 

[d9_lives]

OA 60k (90k used for housing)
SA 210k
MA 66k.

Late 30s. Keyi?

 

[babyrobo]

Just to complete the math, if you add $3,000 to your MA this month and raise it to the BHS ($66,000), and if you never withdraw from it (someone else pays your MediShield Life, CareShield Life, and Integrated Shield premiums) then you'll earn 4% interest on $63,000 for one month and 4% on $66,000 for 11 months. That equals $2,520. So if your SA has reached the FRS then you get the lion's share of your $3,000 bouncing into your OA on December 31, 2022. And you can get tax relief on the $3,000. And that's not even counting the compulsory contributions -- the MA portion of those bounces into your OA too. So if you want more OA inflow (for housing as a notable example) then having MA=BHS and SA>=FRS works really great.

So if your SA has reached the FRS then you get the lion's share of your $3,000 bouncing into your OA on December 31, 2022. And you can get tax relief on the $3,000.

What is this lion's share of $3,000 into OA? Topup to MA for it to flow to OA? If I'm not wrong.. Once MA is at BHS, one can't topup anymore