CPF SA

[vsvs24]

Anyone waiting for month-end to do lump sum SA top up for this year? I read that this is the best strategy to earn interest for the whole year.

Waiting for month end to do VC coz SA hit FRS.

 

[ferrero]

with regard to topping up to my dad's cpf n government matching a dollar to a dollar up to 600, can all children do it? so if my dad has 5 children, each top up 600 so he get 3k? or the max is 600 dollars meaning to say only 1 kid can top up?

 

[highsulphur]

with regard to topping up to my dad's cpf n government matching a dollar to a dollar up to 600, can all children do it? so if my dad has 5 children, each top up 600 so he get 3k? or the max is 600 dollars meaning to say only 1 kid can top up?

One only la....

 

[ferrero]

oh ok thanks bro

 

[BBCWatcher]

Generally speaking children shouldn't hold their top up fire simply because of the matching funds cap. They still all qualify for tax relief if otherwise eligible, and the 4.0% interest (plus possible bonus interest) is mighty attractive.

 

[only_lonely]

Is there cap for SA topup?

 

[badsector]

Is there cap for SA topup?

up to FRS limit

 

[Value.Matrix]

Is there cap for SA topup?

Below 55, up to FRS (but only 7k top up enjoys tax relief)

Above 55, up to ERS to RA only (SA cannot be top up, and only 7k top up enjoys tax relief up to if RA below FRS)

 

[kerwen]

So its auto.....thank you.

Can share what fund did u buy for the shielding?

 

[dgeralds]

will buy Nikko AM Shenton Short Term Bond Fund SGD

Can share what fund did u buy for the shielding?

 

[tek888]

hi folks,

I've been reading through this thread with interest. See many examples using BRS and FRS.

My situation is a little different and will like to get some advice from you whether my understanding is correct.

1) I have about $260k in my SA. So it means that I can shield $220k since I only need to keep $40k before turning 55?

2) My wife only has $50k in her SA and she's few years younger than me. After turning 55, I am still allowed to transfer $ from my OA to her SA right? Since I would have the $220k in my SA.

thanks

 

[BBCWatcher]

1) I have about $260k in my SA. So it means that I can shield $220k since I only need to keep $40k before turning 55?

Per current rules, that's correct.

2) My wife only has $50k in her SA and she's few years younger than me. After turning 55, I am still allowed to transfer $ from my OA to her SA right? Since I would have the $220k in my SA.

You can transfer funds now, at age 55+, or some of both, as you prefer. It's the recipient's (your wife's) age that has some importance. Once she reaches her 55th birthday you cannot transfer your OA dollars into her SA, but you can transfer your OA dollars into her RA.

 

[tek888]

ok noted. thanks BBCWatcher!!

 

[mopiko_boy]

after age 55, can the yearly interest earned by RA be used as a top-up to meet the yearly adjusted ERS in Jan? so that I don't have to top-up using cash/SA.

 

[BBCWatcher]

after age 55, can the yearly interest earned by RA be used as a top-up to meet the yearly adjusted ERS in Jan? so that I don't have to top-up using cash/SA.

First of all, you’re not required to top up your Retirement Account to the Enhanced Retirement Sum or even to any level in particular. That’s a voluntary choice, a nice one.

Second, you don’t actually want what you’re asking for because it would only limit your choice. Fortunately the Enhanced Retirement Sum limit is based only on principal, not interest. That is, the interest you earn in your Retirement Account doesn’t reduce your optional opportunities to keep depositing funds in your Retirement Account every time the ERS increases, for the rest of your life.

 

[Nofear40]

Hi, post 55, can I opt for FRS, and withdraw the excess, and contribute $7k yearly to RA account to enjoy tax relief?

 

[snowcrabramyeon]

Hi, post 55, can I opt for FRS, and withdraw the excess, and contribute $7k yearly to RA account to enjoy tax relief?

I think you can only get tax relief for the amount up to FRS. Please see:
www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

 

[Nofear40]

I think you can only get tax relief for the amount up to FRS. Please see:
www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

I already hit FRS. Am thinking to withdraw the money above FRS when hit 55, and contribute 7k annually so that I can claim tax relief
One can claim tax relief if you top up to ERS cap above 55

 

[Value.Matrix]

I already hit FRS. Am thinking to withdraw the money above FRS when hit 55, and contribute 7k annually so that I can claim tax relief
One can claim tax relief if you top up to ERS cap above 55

Did you read carefully? Who said anything about ERS? Want to double confirm first? Its all FRS only for tax relief.

 

[zoneguard]

One can claim tax relief if you top up to ERS cap above 55

There is no tax relief for top-ups to ERS:
https://www.iras.gov.sg/irashome/In...tions-for-Individuals/CPF-Cash-Top-up-Relief/

Current Full Retirement Sum (FRS) – Retirement Account (RA) savings*

*RA savings refers to the cash set aside in the RA (excluding amounts such as interest earned, any government grants received) plus amounts withdrawn.