CPF – OA & SA Query

[dgeralds]

I’m in late 40’s and already have the current minimum sum (combination of OA and SA). *Last year I did cash top up to my SA (to take advantage of tax relief) up to the allowable minimum sum. *Currently, I am still paying for my private property from my OA.

My question is if I continue to pay for my private property from OA, my minimum sum will go down. *Can I then cash top-up my SA close to end of the year to take advantage of tax relief? Can I do this every year? Because if I do this, not only I can get tax relief but I also I can take out all CPF monies above minimum sum at 55.

Note that I'm already started contributing SRS since last year to take advantage of tax relief.

Thank you.

 

[savesmart]

If I recall correctly, you are only able to top up your SA account to a maximum value that is equivalent to the prevailing minimum sum. Meaning that as long as the value in ur SA is lower than the minimum sum, you can top it up every year subjected to an annual limit.

Hope this helps

I’m in late 40’s and already have the current minimum sum (combination of OA and SA). *Last year I did cash top up to my SA (to take advantage of tax relief) up to the allowable minimum sum. *Currently, I am still paying for my private property from my OA.

My question is if I continue to pay for my private property from OA, my minimum sum will go down. *Can I then cash top-up my SA close to end of the year to take advantage of tax relief? Can I do this every year? Because if I do this, not only I can get tax relief but I also I can take out all CPF monies above minimum sum at 55.

Note that I'm already started contributing SRS since last year to take advantage of tax relief.

Thank you.

 

[dgeralds]

Yes you are right. But minimum sum is a combination of both OA and SA isn't it?

If I recall correctly, you are only able to top up your SA account to a maximum value that is equivalent to the prevailing minimum sum. Meaning that as long as the value in ur SA is lower than the minimum sum, you can top it up every year subjected to an annual limit.

Hope this helps

 

[Guojing88]

For min sum top up, they only count your SA, not SA and OA

 

[teerance85]

The top up limit formula is as such: prevailing min sum - balances in SA

 

[dgeralds]

Thank you all. Yes. Minimum sum is computed from SA.

The top up limit formula is as such: prevailing min sum - balances in SA

 

[RoLanTo]

sorry to hijack the thread.. i have a qn on SA tax relief..

if min sum - balance of SA = 20k, and i top up 20k into my SA this year... will my excess goes into subsequent years tax relief?

E.g, 2015 tax relief-7k, 2016-7k, 2017-6k ??

 

[wts2013]

sorry to hijack the thread.. i have a qn on SA tax relief..

if min sum - balance of SA = 20k, and i top up 20k into my SA this year... will my excess goes into subsequent years tax relief?

E.g, 2015 tax relief-7k, 2016-7k, 2017-6k ??

hahaha, this is not cimb saver a/c wor, u will only get tax relief max 7k, so better to topup 7k per year lor, hahaha

 

[teerance85]

sorry to hijack the thread.. i have a qn on SA tax relief..

if min sum - balance of SA = 20k, and i top up 20k into my SA this year... will my excess goes into subsequent years tax relief?

E.g, 2015 tax relief-7k, 2016-7k, 2017-6k ??

Nope, it's capped at 7k a year, so tax relief is base on max 7k (although you can top up more).

Spread out your top ups if possible, but calculate your SA contributions beforehand.