CPF Top up questions

[rizhal]

That is the main reason why many people did SA shielding in the past.

Yes I understood the CPF shielding.

What I learnt from that Reddit thread:
* RA allocated FRS already
* SA has remaining funds
* OA has funds

When he withdrew some cash from CPF, the funds comes from SA first. This is something I didn’t know. I thought it should be OA naively.

(Above are valid before 1/1/2025)

 

[wenguang]

Yes I understood the CPF shielding.

What I learnt from that Reddit thread:
* RA allocated FRS already
* SA has remaining funds
* OA has funds

When he withdrew some cash from CPF, the funds comes from SA first. This is something I didn’t know. I thought it should be OA naively.

(Above are valid before 1/1/2025)

it is always the case, withdraw until SA depleted then OA. that is why some shield SA in the past to so SA has no money to deduct, thus deduct from OA. After that, they unshield to push the money back to SA.

 

[rizhal]

it is always the case, withdraw until SA depleted then OA. that is why some shield SA in the past to so SA has no money to deduct, thus deduct from OA. After that, they unshield to push the money back to SA.

Thanks for the tip, I finally understand the real CPF shielding technique from you, depleting SA completely!

Too bad, I cannot do this with the new CPF SA change as I am <55 yo.

 

[wenguang]

Thanks for the tip, I finally understand the real CPF shielding technique from you, depleting SA completely!

Too bad, I cannot do this with the new CPF SA change as I am <55 yo.

same, me not qualify to use the hack yet too. no more chance liao

 

[reddevil0728]

Thanks for the tip, I finally understand the real CPF shielding technique from you, depleting SA completely!

Too bad, I cannot do this with the new CPF SA change as I am <55 yo.

even for those above 55 also no longer an option from 2025

 

[BBCWatcher]

There's a way to withdraw OA dollars (dollars above $20,000) ahead of SA dollars if you're age 55+ and have a decently funded (or better) RA:

1. Open a CPF Investment Account if you don't already have one.
2. Buy some investment using OA dollars. A 6 month T-bill, for example.
3. Close your CPF Investment Account, and transfer the investment(s) to your CDP account in the process.
4. Sell the investment, or (as with a T-bill) let it mature.

All of this is moot starting in early 2025 when Special Accounts will be closed for all CPF members age 55+.

Or you could transfer your OA dollars to a qualified elder family member's (such as a grandparent's) Retirement Account. The additional dollars will boost the elder's monthly retirement income. The elder could hand you back that incremental income every month (if the elder volunteers to do so). Also, if you are that elder's CPF nominee, any residual balances will be paid to you when the elder passes on. To be clear, all OA dollars transferred to this elder belong to the elder, and the elder could change his/her mind.