CPF SA Shielding hack - RIP (Obsolete)

[BBCWatcher]

hi BBCWatcher, may I know whether this is stated in CPF website? can share the link if it is?

Well, it happened in my household as one of us turned 55. I don't know if it would've happened in subsequent months since that RA got filled up to the FRS and beyond (ERS actually) before the end of the birthday month.

The CPF Board has some good published information about how the MediSave portion will bounce over to the Retirement Account once MediSave has reached the Basic Healthcare Sum and as long as the Retirement Account hasn't reached the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge). I can't find similar published information for the portion ordinarily allocated to SA, but it definitely happened in our case. And it happened after the birthday, days after the formation "sweep" into the Retirement Account. (Surprise!)

On edit: See the update below. I misread the statement. It was the MA part only, not anything from SA.

 

[vsvs24]

Well, it happened in my household as one of us turned 55. I don't know if it would've happened in subsequent months since that RA got filled up to the FRS and beyond (ERS actually) before the end of the birthday month.

The CPF Board has some good published information about how the MediSave portion will bounce over to the Retirement Account once MediSave has reached the Basic Healthcare Sum and as long as the Retirement Account hasn't reached the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge). I can't find similar published information for the portion ordinarily allocated to SA, but it definitely happened in our case. And it happened after the birthday, days after the formation "sweep" into the Retirement Account. (Surprise!)

Interesting.

I have a friend who showed me some movement by CPF Board to her RA after the initial creation of RA at 55. I could not explain why.

I know she pledge her HDB but I am not sure if she even met BRS).

Will ask her to show me again next time we meet.

 

[limlg73]

Well, it happened in my household as one of us turned 55. I don't know if it would've happened in subsequent months since that RA got filled up to the FRS and beyond (ERS actually) before the end of the birthday month.

The CPF Board has some good published information about how the MediSave portion will bounce over to the Retirement Account once MediSave has reached the Basic Healthcare Sum and as long as the Retirement Account hasn't reached the Full Retirement Sum (or Basic Retirement Sum with property pledge/charge). I can't find similar published information for the portion ordinarily allocated to SA, but it definitely happened in our case. And it happened after the birthday, days after the formation "sweep" into the Retirement Account. (Surprise!)

thanks. I remember I read sometime ago that subsequent "sweep" to RA only happens when there is a withdrawal from OA/SA. not sure how they define "withdrawal"

 

[BBCWatcher]

I remember I read sometime ago that subsequent "sweep" to RA only happens when there is a withdrawal from OA/SA. not sure how they define "withdrawal"

OK, I pulled out the statement to take another look. I was mistaken. The portion of compulsory contributions allocated to the Special Account stayed in the Special Account. It was the portion allocated to MediSave that bounced over into the Retirement Account.

Yes, there is another "sweep" attempt made if you haven't met the FRS (or BRS with property pledge/charge). At the latest that'll be shortly before CPF LIFE payouts start (which can be as late as age 70).

 

[royalmix]

hi BBCWatcher, may I know whether this is stated in CPF website? can share the link if it is?

CPFB website Policy FAQ:

After I have met the Basic Healthcare Sum, why do the excess MediSave Account savings overflow to my Special Account or Retirement Account instead of my Ordinary Account?

The CPF system is designed to help you save for your basic retirement needs. Hence, MediSave contributions in excess of the Basic Healthcare Sum are first transferred to your Special Account (SA) if below 55 or Retirement Account (RA) if above 55 and not met FRS to help you set aside your Full Retirement Sum (FRS) in cash. This will boost your monthly retirement payouts.

(bold words added by me)

 

[royalmix]

thanks. I remember I read sometime ago that subsequent "sweep" to RA only happens when there is a withdrawal from OA/SA. not sure how they define "withdrawal"

Yes, whenever you attempt to withdraw monies from your SA/OA, CPFB will do another sweep if you have not met FRS in RA before allowing you to withdraw any balance. But you can withdraw at least 5k from OA from 55. The next sweep is at 65 if you start payout or later, depending on which cohort you are in (as of now, there are still some old cohort under different CPF rules)

 

[limlg73]

thanks @BBCWatcher @royalmix

 

[limlg73]

CPFB website Policy FAQ:

After I have met the Basic Healthcare Sum, why do the excess MediSave Account savings overflow to my Special Account or Retirement Account instead of my Ordinary Account?

The CPF system is designed to help you save for your basic retirement needs. Hence, MediSave contributions in excess of the Basic Healthcare Sum are first transferred to your Special Account (SA) if below 55 or Retirement Account (RA) if above 55 and not met FRS to help you set aside your Full Retirement Sum (FRS) in cash. This will boost your monthly retirement payouts.

(bold words added by me)

Question to @royalmix @BBCWatcher . TIA.

At 55yo, CPF sweep the FRS from OA/SA to RA. If I pledge my property and withdraw from RA until RA balance is only BRS, my monthly MA contribution from employment will overflow to RA or OA?

 

[BBCWatcher]

At 55yo, CPF sweep the FRS from OA/SA to RA.

From SA first. Then, if the Retirement Account hasn't reached the Full Retirement Sum, from OA.

If I pledge my property and withdraw from RA until RA balance is only BRS, my monthly MA contribution from employment will overflow to RA or OA?

Into your OA in that situation but only if your MA has reached the Basic Healthcare Sum (BHS).

 

[firsttimebuyer]

Hi everyone, I need some advice here.

I am trying to max out my CPF Medisave and SA as part of my retirement planning.

I checked my CPF account and the portal says the annual limit for CPF contribution is $37,740 including Mandatory Contribution and that any contribution in excess of the annual limit will be refunded without interest.

I checked my employee CPF contribution. It is around $16K to $17K annually (estimated).

If I hit the limit, what happens to the portion thar comes from employee CPF and employer CPF? Would it be refunded to my boss?

 

[di_andrei]

I checked my employee CPF contribution. It is around $16K to $17K annually (estimated).

If I hit the limit, what happens to the portion thar comes from employee CPF and employer CPF? Would it be refunded to my boss?

It gets refunded to you after year end.

 

[reddevil0728]

It gets refunded to you after year end.

And without interest I think

 

[vsvs24]

Hi everyone, I need some advice here.

I am trying to max out my CPF Medisave and SA as part of my retirement planning.

I checked my CPF account and the portal says the annual limit for CPF contribution is $37,740 including Mandatory Contribution and that any contribution in excess of the annual limit will be refunded without interest.

I checked my employee CPF contribution. It is around $16K to $17K annually (estimated).

If I hit the limit, what happens to the portion thar comes from employee CPF and employer CPF? Would it be refunded to my boss?

If exceed annual limit, the contribution made by your employer will not be affected.

The amount that you topup will be refunded without interest next year.

Have your SA hit FRS ? If not, think you can topup directly to SA. And if your medisave hit max, will overflow to SA.

But note that topup SA cannot be reversed. If near 55 still not too bad. But if far from 55, need to plan properly in case you need the cash later.

 

[highsulphur]

What happens if you are paid two salary by 2 employers in the same month when switching jobs?

Do you get cpf contribution for both salary that month? And how would the second employer knows how much left of the annual cap to adjust for the remaining of the year

 

[reddevil0728]

What happens if you are paid two salary by 2 employers in the same month when switching jobs?

Do you get cpf contribution for both salary that month? And how would the second employer knows how much left of the annual cap to adjust for the remaining of the year

https://www.cpf.gov.sg/member/faq/g...contribute-cpf-for-one-of-my-employments-only

 

[firsttimebuyer]

If exceed annual limit, the contribution made by your employer will not be affected.

The amount that you topup will be refunded without interest next year.

Have your SA hit FRS ? If not, think you can topup directly to SA. And if your medisave hit max, will overflow to SA.

But note that topup SA cannot be reversed. If near 55 still not too bad. But if far from 55, need to plan properly in case you need the cash later.

I checked my CPF portal.

It says that my Current Full Retirement Sum (FRS) is $205,800.

Currently, my OA is $102K and SA is $83K. Medisave is currently $69K.

It also says that the maximum amount I can top up using cash is $122,151.05 (I simply don't have that much cash lying around).

It said that I can transfer $102K from my OA to SA.

I still don't understand how is it that on one hand, the portal says the annual limit on CPF contribution is $37K and on thr other hand, the portal also says the max amount I can top up using cash is $122K.....

 

[highsulphur]

https://www.cpf.gov.sg/member/faq/g...contribute-cpf-for-one-of-my-employments-only

what if you don't report? excess will be refunded the following year?

 

[reddevil0728]

what if you don't report? excess will be refunded the following year?

eh isn't it if you are ok with contributing more u don't need to do anything.

if u want to contribute less then you go apply?

 

[reddevil0728]

I checked my CPF portal.

It says that my Current Full Retirement Sum (FRS) is $205,800.

yes for those turning 55 in 2024

Currently, my OA is $102K and SA is $83K. Medisave is currently $69K.

noted

It also says that the maximum amount I can top up using cash is $122,151.05 (I simply don't have that much cash lying around).

nobody say you must top up in full

It said that I can transfer $102K from my OA to SA.

because that's what you have in your OA

I still don't understand how is it that on one hand, the portal says the annual limit on CPF contribution is $37K and on thr other hand, the portal also says the max amount I can top up using cash is $122K.....

because the annual limit of ~37k is via mandatory / voluntary contribution.

top up using cash is Retirement sum top up scheme.

different thing

 

[highsulphur]

eh isn't it if you are ok with contributing more u don't need to do anything.

if u want to contribute less then you go apply?

so if I don't mind paying my share of CPF contribution for both employment, I can sit back and not report. The annual limit of $37740 applies to one employment or for all employment?