CPF SA

[reddevil0728]

Got a question... If my MA is at BHS and SA is at FRS, then all mandatory contribution will go to my OA? Thanks in advance.

 

[doratch]

Got a question... If my MA is at BHS and SA is at FRS, then all mandatory contribution will go to my OA? Thanks in advance.

If you are under 55yo, even if you have reached FRS (SA), your SA component for your salary will still go to SA.
Your MA component will go to OA. Your OA component will still go to OA.
Your SA interest will still go to SA.
Your MA interest will go to OA.
Your OA interest will still go to OA.

 

[ranchfarm]

Thanks, I've seen this picture. Just wondering if this figure applies for both Voluntary Contribution and Mandatory Contribution.

 

[kumokumo]

I don't believe in maxing out MA before SA.

Up till 55, most people should be healthy and have little need for MA.
After 55, SA is just like MA except you have the choice to withdraw and pay your med bills or use for your retirement.
Worst case is when you need to pay for some treatment not covered by MA, rather have my money in SA.

 

[karakorum1999]

Thanks, I've seen this picture. Just wondering if this figure applies for both Voluntary Contribution and Mandatory Contribution.

It applies for VC too.
For example, when I did VC to all 3 accounts, the portion earmarked for MA according to my age group went to OA instead ( My MA was at BHS, SA exceeded FRS).

 

[celtosaxon]

I don't believe in maxing out MA before SA.

Up till 55, most people should be healthy and have little need for MA.
After 55, SA is just like MA except you have the choice to withdraw and pay your med bills or use for your retirement.
Worst case is when you need to pay for some treatment not covered by MA, rather have my money in SA.

If you must choose, I would agree SA has more value than MA. In fact, the value of keeping money in SA after 55 is so great, it would be the very last thing I would touch. I would even take out a loan to just avoid touching it!

 

[dork32]

I don't believe in maxing out MA before SA.

Up till 55, most people should be healthy and have little need for MA.
After 55, SA is just like MA except you have the choice to withdraw and pay your med bills or use for your retirement.
Worst case is when you need to pay for some treatment not covered by MA, rather have my money in SA.

ma and sa no different if you are able hit bhs, in terms of investment value

 

[celtosaxon]

The problem I have with MA is all the tight restrictions on usage.

When it comes to healthcare, there are clearly more things the US could learn from Singapore than visa-versa. However, this is one area where Singapore really could learn from the US. The HSA (health savings account) is extremely flexible, allowing just about any health related claim without any caps, restrictions, etc... you can even accumulate your claims and process them many years later, allowing your HSA grow, you can also claim overseas medical spending, no problem.

If the restrictions are to preserve MA for absolute necessities, then maybe they need to add an SRS type of account for medical.

 

[Sinkie]

Any VC made in excess will be refunded without interest.

Can check anyone know when will they refund?

 

[BBCWatcher]

Any VC made in excess will be refunded without interest.
Can check anyone know when will they refund?

Typically, reportedly in February. It'll depend on the nature of the excess contribution, though. For example, if you've got a MediSave balance pegged at the Basic Healthcare Sum then attempt to add funds, the CPF Board is likely to send those funds straight back to you fairly quickly, within a month or so.

 

[Sinkie]

Typically, reportedly in February. It'll depend on the nature of the excess contribution, though. For example, if you've got a MediSave balance pegged at the Basic Healthcare Sum then attempt to add funds, the CPF Board is likely to send those funds straight back to you fairly quickly, within a month or so.

Then those who voluntary contribution for tax saving will have a shock

 

[reddevil0728]

Then those who voluntary contribution for tax saving will have a shock

why shock?

 

[hmyoth]

For eg , my annual MC is $20k. Jan i top up MA 3k to hit BHS follow by VC $14740 . Is the amt correct?

 

[BBCWatcher]

For eg , my annual MC is $20k. Jan i top up MA 3k to hit BHS follow by VC $14740 . Is the amt correct?

Yes, but why the “all three account” voluntary contribution? Is the blended interest rate attractive enough that you’d accept the pre-age 55 liquidity constraints?

Also, if you’re not sure how close you’ll end up to the CPF Annual Limit then you can reduce your contribution to some level you think is safer then come back later in the year to round up to the limit as you get more payroll cycles behind you.

 

[hmyoth]

Yes, but why the “all three account” voluntary contribution? Is the blended interest rate attractive enough that you’d accept the pre-age 55 liquidity constraints?

Also, if you’re not sure how close you’ll end up to the CPF Annual Limit then you can reduce your contribution to some level you think is safer then come back later in the year to round up to the limit as you get more payroll cycles behind you.

I above 55. VC to earn the interest. Top up MA to get tax rebate.

 

[SBC]

I above 55. VC to earn the interest. Top up MA to get tax rebate.

How’s your retirement planning?

> 500k in CPF now?

 

[hmyoth]

How’s your retirement planning?

> 500k in CPF now?

Never think of retirement yet. A few more years before I reach 65. Most probably will carry on working if I can just to keep myself occupied.

 

[SBC]

Never think of retirement yet. A few more years before I reach 65. Most probably will carry on working if I can just to keep myself occupied.

That’s good. Envy.

 

[ranchfarm]

If you are under 55yo, even if you have reached FRS (SA), your SA component for your salary will still go to SA.

This is interesting. I wonder if SA component of VC also behave this way?

 

[BBCWatcher]

I above 55. VC to earn the interest. Top up MA to get tax rebate.

OK, but your other option is a Retirement Account top up, right? If you still have room below the Enhanced Retirement Sum. That’s 4% interest feeding into monthly retirement income, quite attractive. If you’ve got enough liquidity already — and you probably don’t need much — then wouldn’t RA be a lot nicer than the mere sub 3% interest (close to 2.5%) an “all three” contribution gives you?