CPF SA

[henrylbh]

Many years ago when I was looking at this, I thought so similarly but there were worked examples that indicated that different rules apply apparently, but I couldn’t figure out conclusively on what’s included.
After that, didn’t pursue further as I am not planning to withdraw the 20% but it would be of interest to many people.

I also have no interest in the 20% lump withdrawal or withdrawal with property pledge or start life payout if not forced to

 

[henrylbh]

Just checked the latest FAQ, for RA withdrawals after 55, it is explicitly mentioned that RSTU top up monies will be excluded in the computation.

Please show link. RA withdrawal after 55 is different from lump sum withdrawal from 65.

 

[zoneguard]

Please show link. RA withdrawal after 55 is different from lump sum withdrawal from 65.

https://www.cpf.gov.sg/members/FAQ/...ent Sum Scheme&folderid=12567&ajfaqid=2188693
https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=13458&ajfaqid=2190699
Both scenarios exclude top-ups from the amount that can be withdrawn.

 

[henrylbh]

https://www.cpf.gov.sg/members/FAQ/...ent Sum Scheme&folderid=12567&ajfaqid=2188693
https://www.cpf.gov.sg/members/FAQ/...avings from 55&folderid=13458&ajfaqid=2190699
Both scenarios exclude top-ups from the amount that can be withdrawn.

The way I understand.

First one applies to RA above BRS with property pledge excluding interest and non working additions.

Second one applies to RA excluding non working additions but no mention of interest earned.

That's why I said RA withdrawal from 55 (with property pledge) is different from lump sum withdrawal from 65, tho both cases, non working additions can never be withdrawn.

 

[zoneguard]

non working additions can never be withdrawn.

To be more precise, top-ups directed to a specific account like SA/RA.

Voluntary contributions that go into all 3 accounts are withdrawable. These are still "non-working additions".

 

[BBCWatcher]

OA to SA transfers are also unrestricted for these purposes.

 

[henrylbh]

To be more precise, top-ups directed to a specific account like SA/RA.

Voluntary contributions that go into all 3 accounts are withdrawable. These are still "non-working additions".

I must admit that I have been imprecise in using the description non-working contributions to mean only interest, top ups and government contribution thereby giving the wrong impression that non-working could also include voluntary contribution that flows into SA/RA.

 

[[Mubiq]]

Hi all, some questions.

I have hit max for my MA@ 63k, and SA is going to hit ceiling in 1 to 2 years time.

Can I check once the ceiling for MA and SA is hit, what happen to the interest generated for these 2 account?
Would the 4% annual interest automatically transfer to the OA?

For employee and employer contribution to CPF, would the contribution being portion out to SA and MA be automatically transfer under OA once the ceilings for the former are hit, hence earning at a lower rate of 2.5%?

 

[reddevil0728]

Hi all, some questions.

I have hit max for my MA@ 63k, and SA is going to hit ceiling in 1 to 2 years time.

Can I check once the ceiling for MA and SA is hit, what happen to the interest generated for these 2 account?
Would the 4% annual interest automatically transfer to the OA?

For employee and employer contribution to CPF, would the contribution being portion out to SA and MA be automatically transfer under OA once the ceilings for the former are hit, hence earning at a lower rate of 2.5%?

Above for MA

For SA, it's own interest should stay in SA

 

[Cobra!]

Hi all, some questions.

I have hit max for my MA@ 63k, and SA is going to hit ceiling in 1 to 2 years time.

Can I check once the ceiling for MA and SA is hit, what happen to the interest generated for these 2 account?
Would the 4% annual interest automatically transfer to the OA?

For employee and employer contribution to CPF, would the contribution being portion out to SA and MA be automatically transfer under OA once the ceilings for the former are hit, hence earning at a lower rate of 2.5%?

iirc once you hit bhs and frs, your ma interest gets shifted go oa and sa interest accumulate in sa.
Contributions to oa and ma go to oa , sa to sa.

 

[zoneguard]

For employee and employer contribution to CPF, would the contribution being portion out to SA and MA be automatically transfer under OA once the ceilings for the former are hit, hence earning at a lower rate of 2.5%?

Contributions to SA means SA balance can exceed FRS, only MA has the hard limit BHS and reddevil linked the diagram on how MA excess contributions over BHS flow to SA or OA depending on the situation. FRS is for limiting cash top-ups and OA->SA transfers.

The extra interest has one specific scenario where extra interest earned on the OA balance goes over to SA. Other than that, SA interest stays in SA and OA interest stays in OA.

 

[[Mubiq]]

Contributions to SA means SA balance can exceed FRS, only MA has the hard limit BHS and reddevil linked the diagram on how MA excess contributions over BHS flow to SA or OA depending on the situation. FRS is for limiting cash top-ups and OA->SA transfers.

The extra interest has one specific scenario where extra interest earned on the OA balance goes over to SA. Other than that, SA interest stays in SA and OA interest stays in OA.

Thanks.for the information. In this case does it make sense for me to top up my SA to reach FRS faster? either from OA to SA or cash top up. I'm in my late 30s now.

 

[reddevil0728]

Thanks.for the information. In this case does it make sense for me to top up my SA to reach FRS faster? either from OA to SA or cash top up. I'm in my late 30s now.

depends on your objective?

 

[zoneguard]

either from OA to SA or cash top up. I'm in my late 30s now.

It depends on whether you need OA monies to pay housing loan and/or whether you are investing the cash for better returns than 4%.

Cash top-ups also earmark the top-up value in SA for transfer to RA at 55 and restrict the use of these monies in RA - for example you cannot withdraw them from RA and so they will be used as premium to enroll in CPF LIFE.

 

[Muskgirlfriend]

hi any cpf strategies?

self employed, CPF OA is $1000, SA 185k, mediasave 20+k. <40 yr old

as a self employed, can I contribute to OA so that it can have more?

 

[Cobra!]

hi any cpf strategies?

self employed, CPF OA is $1000, SA 185k, mediasave 20+k. <40 yr old

as a self employed, can I contribute to OA so that it can have more?

Sure. But why oa?

 

[BBCWatcher]

hi any cpf strategies?
self employed, CPF OA is $1000, SA 185k, mediasave 20+k. <40 yr old
as a self employed, can I contribute to OA so that it can have more?

You have a few choices:

1. You might have a little bit of room in January, 2022, below the 2022 Full Retirement Sum for a cash top up to your Special Account with tax relief. That'll depend on the 2021 interest calculation, really.

2. As a self-employed person you *must* contribute at least to your MediSave Account, and that's eligible for tax relief. You can also make Voluntary Contributions to your MA. You still have a few days to do that in 2021 if you wish. VCs to MA in 2021 must fit within both the CPF Annual Limit and Basic Healthcare Sum, and the full amount is eligible for tax relief. In 2022 VCs to your MA only have to fit within the Basic Healthcare Sum. The first $8,000 of combined SA top ups plus VCs to MA is eligible for tax relief in 2022.

3. You can make "all three account" Voluntary Contributions if you wish. As a self-employed individual this type of VC is eligible for tax relief, and the limit is the CPF Annual Limit ($37,740). There are a few more days to do this in 2021 if you wish.

4. If you have used money from your OA for housing, you can make a partial or full repayment of OA dollars plus accrued interest. However, this option is the lowest yielding (OA's 2.5% interest only) and is not eligible for tax relief.

5. So far I've only described CPF cash injection options for yourself. You may also have cash and transfer options involving the CPF accounts of family members. In particular if you could add funds to a loved one's account(s) and help that loved one earn maximum bonus interest (5% or even as much as 6% interest in some cases), that's fantastic.

 

[dgeralds]

Withdrawing just SA interest followed by OA interest without touching both SA and OA principal is allowed.

Post 55 years old, how can one withdraw the SA interest and OA interests (without touching SA and OA) on a yearly basis? How do we know how much is the interest?

 

[zoneguard]

Post 55 years old, how can one withdraw the SA interest and OA interests (without touching SA and OA) on a yearly basis? How do we know how much is the interest?

Check here from February onward. January don't have any accrued interest yet.

This link to Retirement Dashboard for the withdrawal.

 

[BBCWatcher]

My mum maxed out MA, RA. Should she transfer her OA to SA if hdb is fully paid?

She cannot transfer OA to SA if she's age 55 or older. I assume she is since you mentioned she has a CPF Retirement Account that's maxed out (meaning it has been funded to the Enhanced Retirement Sum).

It's January 1, 2022, as I write this. The Enhanced Retirement Sum increased today, so she should be able to add cash to her Retirement Account if she wishes. I think it's also possible for a family member to transfer their Ordinary Account dollars to her Retirement Account as long as the giver has a "decent" total balance for his/her own retirement needs.