CPF after 55

[reddevil0728]

did you see my example on the previous post?

Case 2:
your salary contribution: 220k
you cash topup = 80k
Then you can withdraw 100k (300k is 100k above frs)
It is up to you to say if this 100k comes 100% your salary contribution, or
this 100k comes from top up (80k) and salary contribution (20k)

if you did not do anytop up, then the amount for withdawal is 20k

you meant cash topup = 280k?

Anyway, CPF disallows cash top-ups once FRS is reached so case 3 isn't possible as max cash top-up will be 180k.

trying to see if i am missing anything. (assuming current rules)

For the scenario where by virtue of Mandatory Contribution you will definitely hit BHS and FRS, and you plan to top up more than 40k, it makes better sense to top up amount more than 40k? because any overflow of MA is not locked and can be shielded.

am i right to say that?

 

[fr33d0m]

yes, topup 280k
ah, I see, so max only topup 180k, and also only can withdraw 20k for cpf shielding, correct?

It is possible as interest earned on top up can’t be withdrawn, either.

so if someone gets top up FRS right after born, 280K is easily achieved by the time of RA creation.

 

[BBCWatcher]

It is possible as interest earned on top up can’t be withdrawn, either.
so if someone gets top up FRS right after born, 280K is easily achieved by the time of RA creation.

Yes, that’s mathematically possible but not common. A more likely but still uncommon scenario is when a well to do person becomes a Singapore PR and then deposits the Full Retirement Sum in his/her new Special Account in one go. (And probably also the Basic Healthcare Sum in his/her MediSave Account.) In all of these rare cases it appears the member’s Retirement Account would get automatically funded above the Full Retirement Sum at age 55. But I’ve never seen a report of anyone who experienced this situation.

 

[dao]

If I withdraw cash from my SA/OA after 55, can I put it back when I don't need the cash or interest rate is very low.

 

[bargin]

U can only put back to RA after 55, not to your OA/SA

 

[vsvs24]

If I withdraw cash from my SA/OA after 55, can I put it back when I don't need the cash or interest rate is very low.

You can put it back to OA as housing refund if you have used OA for housing before. No tax relief.

If your employment CPF contribution in a year is less than $37740, the difference can top up as voluntary contribution to 3 accounts. It would be spilt to OA, SA and MA according to allocation ratio based on your age. No tax relief.

 

[qhong61]

If I withdraw cash from my SA/OA after 55, can I put it back when I don't need the cash or interest rate is very low.

Cpf board is not ur bank.

 

[Value.Matrix]

If I withdraw cash from my SA/OA after 55, can I put it back when I don't need the cash or interest rate is very low.

If you draw 100 from SA, and wish to put back, you cannot put back 100 into SA.

For VC3A, It will be split into ratio 1 : 1 : 10 in OA/SA/MA. So only about $8 into OA and SA, and the rest into MA. MA portion overflows into OA only if MA and RA has reached their cap.

For housing refund, it will go back to OA/RA depending on whether you reach FRS

 

[vsvs24]

The best is don't withdraw SA.

Shield SA just before 55 and after RA is created with FRS withdraw OA first then unshield SA.

 

[BBCWatcher]

To list all the correct CPF deposit answers in one place for a CPF member age 55+:

• You can inject cash into your Retirement Account up to the Enhanced Retirement Sum. Whenever the ERS is raised you can inject more cash since the ERS is based on RA principal only.
• You can deposit as much as you want into your MediSave Account up to your Basic Healthcare Sum.
• You can make an “all three account” Voluntary Contribution, but your VC3A must fit within the CPF Annual Limit.
• You can repay whatever you used for housing to your Ordinary Account, plus accrued interest.

You cannot repay your Special Account in targeted fashion.

 

[henrylbh]

If I withdraw cash from my SA/OA after 55, can I put it back when I don't need the cash or interest rate is very low.

If you withdraw money from SA/OA after 55 there is no way to put back the money to CPF, unless the withdrawal has not been disbursed.

The only way to put back money that you have withdrawn is to make -
Housing refund, either the accrued interest or full refund that would discharge any pledge of your property.
VC, subject to CPF annual limit that goes in OA, SA and MA, (amount in excess of BHS flows into OA),
Top-up MA, subject limit of prevailing BHS,
Top-up RA, subject to limit of prevailing ERS.
All of any combination of the above actions.

 

[henrylbh]

The best is don't withdraw SA.

Shield SA just before 55 and after RA is created with FRS withdraw OA first then unshield SA.

Don't draw if you are adamant in leaving it behind for your beneficiary.

For me, I will definitely withdraw on SA when the time comes as I intended and planned to exhaust my all CPF by about 93 yo. But alas, CPF rules have upset my plan. I am forced to withdraw SA sooner than planned because CPF disallowed accrued interest to be withdrawn first. I have yet to redraw my plan to take into account the effect of the CPF policy change and I fear that my 93 yo target may be shortened by a few years

 

[henrylbh]

Cpf board is not ur bank.

I follow the rules and CPF is my second and life bank I will withdraw OA before SA. Re-deposit it and some of it will go SA.

 

[BBCWatcher]

VC, subject to CPF annual limit that goes in OA, SA and MA, (amount in excess of BHS flows into OA),

If you haven’t met the Full Retirement Sum yet then MA dollars above the BHS spill over into RA (age 55+).

 

[vsvs24]

Don't draw if you are adamant in leaving it behind for your beneficiary.

For me, I will definitely withdraw on SA when the time comes as I intended and planned to exhaust my all CPF by about 93 yo. But alas, CPF rules have upset my plan. I am forced to withdraw SA sooner than planned because CPF disallowed accrued interest to be withdrawn first. I have yet to redraw my plan to take into account the effect of the CPF policy change and I fear that my 93 yo target may be shortened by a few years

I mean deplete OA before withdrawing SA. I share the same view that I want to spend SA and OA before I die.

Re-adjust your plan. Since you are going to all in your OA to tbills, how about using the opportunity to withdraw your OA by closing CPFIS.

 

[ctstalin]

My father is above 55 and CPF is essentially 0. He had used CPF to pay for his house and the sum used + accrued interest is about 77k.

The house is fully paid for and is not pledged, and if he is to sell his current house today. Does he refund 77k into CPF or does he need to refund up till BRS, thereby eating into his cash proceeds?

 

[qhong61]

My father is above 55 and CPF is essentially 0. He had used CPF to pay for his house and the sum used + accrued interest is about 77k.

The house is fully paid for and is not pledged, and if he is to sell his current house today. Does he refund 77k into CPF or does he need to refund up till BRS, thereby eating into his cash proceeds?

Till BRS

 

[ctstalin]

Till BRS

Wah knn... then don't sell liao

 

[qhong61]

Wah knn... then don't sell liao

Sell stay where?

 

[BBCWatcher]

My father is above 55 and CPF is essentially 0. He had used CPF to pay for his house and the sum used + accrued interest is about 77k.

The house is fully paid for and is not pledged, and if he is to sell his current house today. Does he refund 77k into CPF or does he need to refund up till BRS, thereby eating into his cash proceeds?

Till BRS

Isn’t it the amount used from OA, plus accrued interest, up to the Full Retirement Sum (if he doesn’t have another home in Singapore to pledge)?

In this case the amount is $77K, and that’s that. I’m not sure why the repayment amount would be more than OA plus accrued interest.

Details here.