CPF OA account after 55

[oceanicmanta]

I can’t get past step one here. Which endowment, and why would you ever do this? You’d be using funds earning >4% interest!

A relative's single premium type insurance savings bought over 20yrs ago ... projection rates then were sky high

 

[maple96]

Suppose at 40yo, I used $20k of SA to buy endowment that matures when I am 60yo.

At 55, my RA is formed with just 30k from remaining OA & SA.

When my endowment matures at 60, the projected value is $40k back to SA.

Would CPF require the $40k to be moved to RA as FRS is not met ?

A relative's single premium type insurance savings bought over 20yrs ago ... projection rates then were sky high

I also bought single premium and matured slightly more than 4% compounded, money back in SA.

Good that his/hers only mature at 60 (auto hacked). But based on the projected u quoted, it works out to be about 3.5%+ compounded.

After the endowment matures and monies returned to SA, ased on CPF rules, the next time a withdrawal is made from OA/SA, the monies will be transferred to RA to meet FRS before the withdrawal amt based on rules is given.

 

[oceanicmanta]

I also bought single premium and matured slightly more than 4% compounded, money back in SA.

Good that his/hers only mature at 60 (auto hacked). But based on the projected u quoted, it works out to be about 3.5%+ compounded.

After the endowment matures and monies returned to SA, ased on CPF rules, the next time a withdrawal is made from OA/SA, the monies will be transferred to RA to meet FRS before the withdrawal amt based on rules is given.

Thanks Maple .. the Maturity value is hypothetical. I am not sure yet what the returns are for that plan (missing original BI, waiting for revised BI).

So the endowment monies will eventually be swept into RA.

His RA is below 60k now, but with the endowment monies, it could be more than 60k & he would be auto-enrolled into CPF Life ... (preference is not to be in CPF Life). It seems this will likely be the case now.

Is it also the case that if FRS is not met after 55yo, Mandatory Contribution from employment will also be swept in RA ?

 

[kuti-kuti]

Got a question on OA & Medisave acc.

With yearly MA min sum adjusted every year, lets say if jobless before 65 and there is a balance amount left in OA & SA, will CPF top up the MA to the new year's limit using the person's OA or SA account?

 

[maple96]

Got a question on OA & Medisave acc.

With yearly MA min sum adjusted every year, lets say if jobless before 65 and there is a balance amount left in OA & SA, will CPF top up the MA to the new year's limit using the person's OA or SA account?

policy had been changed, no need to topup MA to BHS, the increase limit is for people who want to topup MA to BHS and those still working or doing VC to lockin to BHS.

 

[maple96]

Thanks Maple .. the Maturity value is hypothetical. I am not sure yet what the returns are for that plan (missing original BI, waiting for revised BI).

So the endowment monies will eventually be swept into RA.

His RA is below 60k now, but with the endowment monies, it could be more than 60k & he would be auto-enrolled into CPF Life ... (preference is not to be in CPF Life). It seems this will likely be the case now.

Is it also the case that if FRS is not met after 55yo, Mandatory Contribution from employment will also be swept in RA ?

If at 65, RA is below limit then no need join CPF Life, 65 is the cutoff age to determine auto joining into CPF Life. Unless he knows to "hack"

Yes, so long have not meet FRS and he request to withdraw OA/SA, the monies will be swept into RA, except the min allowed to be withdrawn.

 

[kuti-kuti]

policy had been changed, no need to topup MA to BHS, the increase limit is for people who want to topup MA to BHS and those still working or doing VC to lockin to BHS.

OK, thanks!

 

[henrylbh]

Is it also the case that if FRS is not met after 55yo, Mandatory Contribution from employment will also be swept in RA ?

The MC including VC after 55 will continue to go into the 3 accounts, namely, OA, SA and MA and remain there. This new money will go into RA to cover the shortfall only when he attempts to withdraw it. Why like that, ask CPF. Better voluntarily move the money to RA the moment the MC go in the accounts.

 

[bjornng]

hey guys, quick question on cash top up to my parents cpf, have read it up so just want to confirm..

understand that top up will be to my parents RA account (both are already past 55 yo). however, they will not have the liquidity to withdraw it right? only when they reach 65, and they are able to receive through the monthly payout?

 

[crimsontactics]

hey guys, quick question on cash top up to my parents cpf, have read it up so just want to confirm..

understand that top up will be to my parents RA account (both are already past 55 yo). however, they will not have the liquidity to withdraw it right? only when they reach 65, and they are able to receive through the monthly payout?

Depends on your top up option.

Got 3.

1) Directly to RA
2) Directly to MA
3) Top up OA, SA and MA together.

Sent from . using GAGT

 

[tangent314]

hey guys, quick question on cash top up to my parents cpf, have read it up so just want to confirm..

understand that top up will be to my parents RA account (both are already past 55 yo). however, they will not have the liquidity to withdraw it right? only when they reach 65, and they are able to receive through the monthly payout?

Assuming you are topping up to the FRS, then no they cannot withdraw from their RA. If you are topping up beyond the FRS towards the ERS, then they can withdraw anything above the FRS. Not much point though, since you don't get tax reliefs for topping up beyond FRS.

 

[henrylbh]

Assuming you are topping up to the FRS, then no they cannot withdraw from their RA. If you are topping up beyond the FRS towards the ERS, then they can withdraw anything above the FRS. Not much point though, since you don't get tax reliefs for topping up beyond FRS.

Nothing can be withdrawn from RA, even if amount exceeds FRS.

 

[madtari]

Just want to touch on RTSU since I recently did some reading on it... for creation of RA, it will first use non top-up funds for creation of FRS. Only if insufficient then will top-up funds be used. So I don't really understand how can we use cash to create RA. Any guru wanna clarify on this?

Also, noticed some members mentioned about using spare cash to create RA. Is this achieved by doing a RSTU by cash (assuming $7k a year), and just before turning 55, make a safe investment using all the funds available in SA (excluding those amount funded by cash as it is not for investment purpose). Once the SA balance (which is funded by cash) is being transferred to RA, then dispose all the “safe investments” which the proceeds will be refunded back to SA?

 

[crimsontactics]

Just want to touch on RTSU since I recently did some reading on it... for creation of RA, it will first use non top-up funds for creation of FRS. Only if insufficient then will top-up funds be used. So I don't really understand how can we use cash to create RA. Any guru wanna clarify on this?

No. They will use top-up funds from RSTU first.

Sent from . using GAGT

 

[madtari]

Ya... I just realised I've asked a stupid qns. Lol... top up for retirement sum of course should be transferred with priority to RA otherwise what's the purpose of RTSU.

No. They will use top-up funds from RSTU first.

Sent from . using GAGT

 

[SBC]

Got a question on OA & Medisave acc.

With yearly MA min sum adjusted every year, lets say if jobless before 65 and there is a balance amount left in OA & SA, will CPF top up the MA to the new year's limit using the person's OA or SA account?

I will think there is no forced mechanism to transfer your OA or SA to MA. MA can be used for MediShield Premium and hospital expenses. If MA runs out of fund, will be expected to fund it via cash.

As whether you want to top up your MA nearer or to BHS when you are jobless, that’s your personal choice.

 

[henrylbh]

Got a question on OA & Medisave acc.

With yearly MA min sum adjusted every year, lets say if jobless before 65 and there is a balance amount left in OA & SA, will CPF top up the MA to the new year's limit using the person's OA or SA account?

When medisave required amount was removed, there is no need to made good any shortfall in BHS as it increases annually to age 65.

If you are jobless before 65, the concern should be whether you have FRS in RA. If not, SA and OA will go into RA to made good shortfall in RA.

 

[immortal86]

Sorry to dig this.

My mum is reaching 65 soon, her Ra is below brs and there's still money in OA.

what's the recommended thing to do?

Can xfer OA to RA?

 

[Okenba]

Yes can transfer