CPF Top up questions

[Shawny88]

Then medisave topup is not so attractive to m anymore.

i will only get 15% tax relief plus 2.5% OA interest as the subsequent contribution will overflow to OA.

 

[reddevil0728]

Then medisave topup is not so attractive to m anymore.

i will only get 15% tax relief plus 2.5% OA interest as the subsequent contribution will overflow to OA.

what's the better alternative?

 

[Shawny88]

what's the better alternative?

Any instrument that gives me 3.5% with some liquidity is a better alternative

 

[reddevil0728]

Any instrument that gives me 3.5% with some liquidity is a better alternative

yea what is it? can share?

 

[Shawny88]

yea what is it? can share?

SSB and some FDs are at 3.2%

 

[reddevil0728]

SSB and some FDs are at 3.2%

ah right. ok la so for now.

 

[highsulphur]

what's the better alternative?

15% tax relief isn't good enough reason?

 

[reddevil0728]

15% tax relief isn't good enough reason?

To that user apparently not

 

[PhantomOpera]

I am unable to top up my SA as hit max. Does it mean I can no longer top up until I reach 55 when I can top up to the ERS amt?

 

[highsulphur]

I am unable to top up my SA as hit max. Does it mean I can no longer top up until I reach 55 when I can top up to the ERS amt?

Interest and contribution from salary will still hit SA

 

[PhantomOpera]

Interest and contribution from salary will still hit SA

??? Dun quite understand

 

[highsulphur]

??? Dun quite understand

sorry i think i didn't answer your question specifically.

Yes you can't top up your SA anymore. You can top up your RA to ERS upon RA being formed.

 

[Nofear40]

sorry i think i didn't answer your question specifically.

Yes you can't top up your SA anymore. You can top up your RA to ERS upon RA being formed.

But no tax relief right?

 

[bargin]

https://www.iras.gov.sg/taxes/indiv...ntral-provident-fund-(cpf)-cash-top-up-relief

But no tax relief right?

 

[Nofear40]

https://www.iras.gov.sg/taxes/indiv...ntral-provident-fund-(cpf)-cash-top-up-relief

Thanks
So up to FRS

 

[jeffong]

If I were to pledge my property to keep my RA at BRS level when I hit 55, will I still get Tax Relief if I top-up 8k every year then? IRAS website only says tax relief is given on contributions up to FRS levels but no mention if they consider the property pledge when computing it.

 

[fr33d0m]

If I were to pledge my property to keep my RA at BRS level when I hit 55, will I still get Tax Relief if I top-up 8k every year then? IRAS website only says tax relief is given on contributions up to FRS levels but no mention if they consider the property pledge when computing it.

it means once your CPF SA reaches FRS, you have lost SA Top up relief forever.

 

[BBCWatcher]

You can pledge a property and withdraw funds if you wish, but withdrawals are counted toward the Full Retirement Sum for tax relief eligibility purposes, as Royalmix notes.

Any time your MediSave Account is below the Basic Healthcare Sum you have a tax relief opportunity with a Voluntary Contribution to MediSave (if you’re otherwise eligible). Your MediSave Account will always be below the BHS when the BHS is raised, and that usually happens every January 1. However, once you celebrate your 65th birthday your BHS is fixed. You’ll also have room below the BHS every time there’s a deduction from your MA, to pay MediShield Life premiums for example.

You may have tax relief opportunities associated with another CPF member’s SA, RA, and/or MA. For example, if your 54 year old parent has a Special Account that hasn’t reached the Full Retirement Sum then you can top up that parent’s SA with tax relief (if otherwise eligible, and up to tax relief limits).

 

[jeffong]

In other words, once your RA reaches the Full Retirement Sum you don’t have any further tax relief opportunities associated with your RA. You can pledge a property and withdraw funds if you wish, but withdrawals are counted toward the Full Retirement Sum for tax relief eligibility purposes, as Royalmix notes.

Any time your MediSave Account is below the Basic Healthcare Sum you have a tax relief opportunity with a Voluntary Contribution to MediSave (if you’re otherwise eligible). Your MediSave Account will always be below the BHS when the BHS is raised, and that usually happens every January 1. However, once you celebrate your 65th birthday your BHS is fixed. You’ll also have room below the BHS every time there’s a deduction from your MA, to pay MediShield Life premiums for example.

You may have tax relief opportunities associated with another CPF member’s SA, RA, and/or MA. For example, if your 54 year old parent has a Special Account that hasn’t reached the Full Retirement Sum then you can top up that parent’s SA with tax relief (if otherwise eligible, and up to tax relief limits).

Given that FRS increases every year, I should be able to still do cash top-up to the new FRS mark and get tax relief right unless the interest you get for that year is counted in.

 

[fr33d0m]

Given that FRS increases every year, I should be able to still do cash top-up to the new FRS mark and get tax relief right unless the interest you get for that year is counted in.

FRS increases less than 4% per year, interest rate is 4+%