CPF Top up questions

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mkx3000

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if i topup 7k in the beginning of the year when my SA saving is below FRS (around 180k). but at the end of year, my SA saving is over 180k. will the 7k still eligible for tax relief?
 
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maple96

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Project_Xco said:
FRS: $181,000
ERS: $271,500

After 55, govt will set aside RA up to FRS.

They mentioned you can top up RA up to ERS.

Let's say at 55, i top up RA till $260k ($11.5k short of hitting ERS). After few years, due to RA interest effect, it should have grown and surpass the ERS. Can I still top up?

Correct me if anything above is wrong.
Click to expand...

Will your salary/income at 55 be very much higher?

Do u need income tax relief?

If u need this additional income tax relief, read this find out how
 
BBCWatcher

BBCWatcher

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mkx3000 said:
if i topup 7k in the beginning of the year when my SA saving is below FRS (around 180k). but at the end of year, my SA saving is over 180k. will the 7k still eligible for tax relief?
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Yes, and that's rather the point if you're getting close to the Full Retirement Sum and if you value higher interest, to get your top ups with tax relief done sooner rather than later. The second to last business day in January, via PayNow QR, is a great time and way to do your CPF MediSave and Special Account top ups with tax relief. (And actually the MediSave top up should come a bit earlier to beat your payroll cycle if you can, if you're limited by the Basic Healthcare Sum.)
 
henrylbh

henrylbh

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mkx3000 said:
if i topup 7k in the beginning of the year when my SA saving is below FRS (around 180k). but at the end of year, my SA saving is over 180k. will the 7k still eligible for tax relief?
Click to expand...

As long as your SA has not reached current year FRS, you will get tax relief for cash top up to FRS, even though subsequent MC during the year pushed your SA beyond FRS.
 
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terence2112

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Sorry a quick question. If I TOP up my Medisave via PayNow, will it be able to see the TOP up immediately.
 
henrylbh

henrylbh

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BBCWatcher said:
Yes, and that's rather the point if you're getting close to the Full Retirement Sum and if you value higher interest, to get your top ups with tax relief done sooner rather than later. The second to last business day in January, via PayNow QR, is a great time and way to do your CPF MediSave and Special Account top ups with tax relief. (And actually the MediSave top up should come a bit earlier to beat your payroll cycle if you can, if you're limited by the Basic Healthcare Sum.)
Click to expand...

How much can one gain or lose by topping up second to last business day in Jan comparing to doing it now to the limit?
 
Dividends

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terence2112 said:
Ok thanks. I thought I saw somebody posting in another thread, a TOP up to the Medisave and it’s dated 1jan.
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Hmm it could have changed or something, I topped up my SA last year 7 times via Paynow and it didn't show up instantly. Another user, decibel., is saying that it's instant.

For this year's topup, I did it via eNets instead, and it seems like it'll take a few working days.
 
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Project_Xco

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maple96 said:
Will your salary/income at 55 be very much higher?

Do u need income tax relief?

If u need this additional income tax relief, read this find out how
Click to expand...

Thank you for sharing the article. I doubt I will need this as i don't plan to work after 55.

However, it is an interest strategy for those who prefer income tax rebate over high RA interest rate.
 
decibel.

decibel.

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Dividends said:
Hmm it could have changed or something, I topped up my SA last year 7 times via Paynow and it didn't show up instantly. Another user, decibel., is saying that it's instant.

For this year's topup, I did it via eNets instead, and it seems like it'll take a few working days.
Click to expand...
I top up on 3 Jan. Pretty instant for both MA and SA using PayNow.

Sent from HUAWEI VOG-L29 using GAGT
 
decibel.

decibel.

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Thought interest calculated after MC?

Sent from HUAWEI VOG-L29 using GAGT
 
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