CPF SA Shielding hack - RIP (Obsolete)

[Listopad]

You would still have left 40k investable in SA so withdrawal will still come from SA first.

And I assume beyond this 40K, we can then withdraw from OA first before further touching the SA (vested) ? Not that bad …. Or am I missing something?

 

[BBCWatcher]

And I assume beyond this 40K, we can then withdraw from OA first before further touching the SA (vested) ? Not that bad …. Or am I missing something?

Yes, but if you want to withdraw OA dollars first — and if you're withdrawing OA dollars in excess of $20,000 in that account — there's another option available. You can open a CPF Investment Account (if you don't have one already), buy a 6 month T-bill with the OA dollars you want to withdraw, then (while closing your CPF Investment Account) transfer the T-bill to your CDP account. With that maneuver you don't touch even $1 in your SA never mind $40,000+.

 

[oppoguy]

You would still have left 40k uninvestable in SA so withdrawal will still come from SA first.

the 40k not makan by ra?

 

[a4973]

the 40k not makan by ra?

The way TS posed the question seems like RA already formed.

 

[oppoguy]

The way TS posed the question seems like RA already formed.

are you suggesting that whenever you want to withdraw from the oa, you shield the sa and withdraw oa + 40k sa?

 

[BBCWatcher]

are you suggesting that whenever you want to withdraw from the oa, you shield the sa and withdraw oa + 40k sa?

You can do that, but if your OA exceeds $20,000 and you only wish to withdraw some or all of your OA funds that exceed $20,000 you probably have a better withdrawal option via the CPF Investment Scheme.

Another potential option (to get morbid for a moment) is you could transfer OA dollars to an elder who has nominated you as their CPF beneficiary. Upon the elder's demise you receive his/her remaining CPF assets including most or all of what you transferred to that elder. Do families really do this? Yes, some.

 

[henrylbh]

You can do that, but if your OA exceeds $20,000 and you only wish to withdraw some or all of your OA funds that exceed $20,000 you probably have a better withdrawal option via the CPF Investment Scheme.

Another potential option (to get morbid for a moment) is you could transfer OA dollars to an elder who has nominated you as their CPF beneficiary. Upon the elder's demise you receive his/her remaining CPF assets including most or all of what you transferred to that elder. Do families really do this? Yes, some.

You won't know when you will get back the OA transferred to an elder. Neither can you be sure to be the ultimate beneficiary as the elder can be swayed and can change nomination anytime without the transferor's knowledge.

 

[henrylbh]

You would still have left 40k uninvestable in SA so withdrawal will still come from SA first.

The way TS posed the question seems like RA already formed.

Since you think TS already had RA formed, his 40k uninvestible in SA would have moved to RA and SA would be zero for withdrawing.

 

[BBCWatcher]

You won't know when you will get back the OA transferred to an elder…

I suppose that’ll depend on how near death the elder is. In some cases you will know.

 

[dork32]

I did the first method ie close CPFIA. But need to note there are transfer charges of $10 + GST per security.

can you open the cpfia again after you close it

 

[BBCWatcher]

can you open the cpfia again after you close it

We’ve seen at least one report in this forum that you can. And there are 3 CPFIA banks to choose from.

 

[dork32]

I have not opened CPFIA since closing it. But heard from 2 people that they could open again.

can you try? open cpfia does not need money. just click click click

 

[henrylbh]

Another potential option (to get morbid for a moment) is you could transfer OA dollars to an elder who has nominated you as their CPF beneficiary. Upon the elder's demise you receive his/her remaining CPF assets including most or all of what you transferred to that elder. Do families really do this? Yes, some.

You won't know when you will get back the OA transferred to an elder.

I suppose that’ll depend on how near death the elder is. In some cases you will know.

What kind of potential option offered to poster who need to withdraw OA without touching SA

 

[royalmix]

What kind of potential option offered to poster who need to withdraw OA without touching SA

"Money is useless to the dead" (he always said), but useful to the beneficiary but after taking a potential loss if he does not know the dead has CPF Life!

My relative vegetable state for more than 10 years leh

 

[BBCWatcher]

If the CPF member is on life support, and the family is deciding when (not if) to withdraw the invasive care that's keeping the member alive....

Obviously one hopes this set of circumstances never happens. But occasionally it does.

 

[BBCWatcher]

Another potential option: at age 55+ you can use OA dollars to pay down a mortgage then sell the home. If your RA is already funded at least to the Full Retirement Sum then you have the option to receive all of the net home sale proceeds as cash, including the OA dollars you used just prior to the home sale.

Can everyone do this? Of course not. But a few can.

 

[RedsYWNA]

If the CPF member is on life support, and the family is deciding when (not if) to withdraw the invasive care that's keeping the member alive....

Obviously one hopes this set of circumstances never happens. But occasionally it does.

My wife and I topped up $8k each to my late dad's CPF, when he was on palliative care. We received the tax benefits when his CPF was refunded, but we left the interest earned to my mum instead.

 

[Andrew833]

I did the first method ie close CPFIA. But need to note there are transfer charges of $10 + GST per security.

"transfer charges of $10 + GST per security."
Per security, do you mean per stock/ counter?

 

[reddevil0728]

"transfer charges of $10 + GST per security."
Per security, do you mean per stock/ counter?

yep.

but if u have different issues of T-bill is considered separate counter

 

[Andrew833]

Just look at your CPFIA holdings. Basically each line is counted as one.

Forgot to mention, be careful if you hold unit trusts. Basically anything that can transfer to CDP is safe. But if it is something that cannot go over to CDP, not sure how they deal with closure.

Mine was straight forward. Just some tbills and 3 SGX shares.

Need to ask CPF staff bah. I have SGX stocks and Unit Trust (from insurance and Endowus).
Thanks.