CPF Top up questions

[BBCWatcher]

I checked my cpf comtribution it stated that the amt was paid on 2 Jan 2018 for the month of dec.

That'll qualify for 2018 tax relief (Year of Assessment 2019). Check your online CPF statement. If CPF credited the top-up in 2018, it has gone into the books for 2018.

For future reference, various top-up channels have different lead times. The absolute latest deadline is via a paper check handed to a CPF officer at a CPF customer service location before 10:00 a.m. on the last business day of the year (or last business day of the month if you're trying to meet a month end deadline). Every other top-up channel, including AXS and e-Cashier, has a longer lead time.

To CPF's credit, they explain all this upfront.

 

[tmkedmw]

...

For future reference, various top-up channels have different lead times. The absolute latest deadline is via a paper check handed to a CPF officer at a CPF customer service location before 10:00 a.m. on the last business day of the year (or last business day of the month if you're trying to meet a month end deadline). Every other top-up channel, including AXS and e-Cashier, has a longer lead time.

To CPF's credit, they explain all this upfront.

Isn't payment by paper check considered a manual transaction which then implies leadtime is 7 working days?

e-transactions leadtime is 5 working days.

i just pick an example from https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-topping-up-scheme

Pls enlighten.

 

[babyrobo]

MA overflows to SA until SA hits FRS, thereafter it overflows to OA

SA has no ceiling, so it will continue to grow beyond FRS. But after SA hits FRS, no more top-up into SA is allowed

Hi, thanks. It means no more topup from me into my SA account hence only employer contributions will continue to go into SA, is this correct?

 

[BBCWatcher]

Isn't payment by paper check considered a manual transaction which then implies leadtime is 7 working days?

Here's what CPF says:

Q: When should I top-up?
A: If you are topping up by cheque, your application must reach the Board by 31 December, 10 am, to enjoy tax relief for the following year's Tax Assessment. If 31 December falls on a weekend, your application should reach us on the last working Friday of the year, 10 am. This is to allow sufficient time for the cheque to be cleared.

Elsewhere CPF says that e-Cashier and AXS channels require at least one working day of lead time. So the paper check method (hand delivered to CPF before 10:00 a.m. on the last business day of the year, or month) is the absolute latest deadline obtainable.

As always, when you cut it so close, you run the risk of cutting it too close. Try to avoid flirting too much with the deadlines.

 

[kehyi4]

Hi, thanks. It means no more topup from me into my SA account hence only employer contributions will continue to go into SA, is this correct?

Normal contribution from employment (both employer and employee portions) will continue to go into SA according to your age band

 

[watsum]

Need help to optimise my CPF. Should I continue to put into SA/MA?

Male. 45yo. Freelancer. HDB fully paid.

Account Balances (as at 04 Jan 2018)
Ordinary Account (OA) $0.00
Special Account (SA) $99,916.49
Medisave Account (MA) $34,106.33

 

[JuniorLion]

Need help to optimise my CPF. Should I continue to put into SA/MA?

Male. 45yo. Freelancer. HDB fully paid.

Account Balances (as at 04 Jan 2018)
Ordinary Account (OA) $0.00
Special Account (SA) $99,916.49
Medisave Account (MA) $34,106.33

Might as well do that till you reach your FRS.

 

[WWH123]

protect your SA at all costs. thank me in 10 years time.

 

[henrylbh]

Might as well do that till you reach your FRS.

Put in what you think you will never need or touch till 65.

 

[watsum]

protect your SA at all costs. thank me in 10 years time.

Could you explain how I should protect the SA? Or what danger is there?

 

[edwinttt1978]

protect your SA at all costs. thank me in 10 years time.

I protect my SA with a chastity belt. It costs me nothing.

 

[edwinttt1978]

Need help to optimise my CPF. Should I continue to put into SA/MA?

Male. 45yo. Freelancer. HDB fully paid.

Account Balances (as at 04 Jan 2018)
Ordinary Account (OA) $0.00
Special Account (SA) $99,916.49
Medisave Account (MA) $34,106.33

If by these figures alone, put into MA.

 

[WWH123]

OA is zero. Just b4 55, park your SA in some investment which should be around 200k with interest and contributions. Otherwise CPF will swipe your SA clean.

Could you explain how I should protect the SA? Or what danger is there?

 

[testerjp]

He can park his SA into what investments?

 

[watsum]

If by these figures alone, put into MA.

What is the reason to put into MA and not SA?

 

[henrylbh]

What is the reason to put into MA and not SA?

MA can be used for medical expenses and medical insurance though restricted. If not used, not a cent in MA cannot be withdrawn till death.

Contributions to MA will increase in accordance with the set BHS till 65.

SA will go into RA at 55 and cannot be withdrawn till age 65 and payout is by instalments from 65 to eternity. Die early and you may lose some of your money.

Contributions to SA will increase in accordance with the set FRS till 55.

 

[BBCWatcher]

SA will go into RA at 55 and cannot be withdrawn till age 65 and payout is by instalments from 65 to eternity.

CPF LIFE payouts can also be deferred to age 70, or started anywhere in between age 65 to 70.

Eternity would be nice, but sadly that option is not available. However, payouts will continue for the lifetime of the member.

A choice of three payout plans is available: Basic, Standard, and Escalating.

If you have reasonable alternative longevity insurance, such as a traditional company pension (life annuity) from an insurance company, you can opt out of CPF LIFE entirely if you wish.

 

[chopra]

MA can be used for medical expenses and medical insurance though restricted. If not used, not a cent in MA cannot be withdrawn till death.

Contributions to MA will increase in accordance with the set BHS till 65.

SA will go into RA at 55 and cannot be withdrawn till age 65 and payout is by instalments from 65 to eternity. Die early and you may lose some of your money.

Contributions to SA will increase in accordance with the set FRS till 55.

sorry but i cant see why this is a reason to put into MA and not SA.



separately, for my case, putting into retired Parents' SA instead of MA for first 7k will allow me to get tax relief. since they have retired, putting into their MA will not enjoy any tax relief.

 

[streams]

Hi all, I just top up my parent's RA. She is on the old scheme ( > 80 years old) so how does she ask for higher monthly payout from CPF. Is this auto calculated by CPF hence no need us to put up an application.

if need application, how should we go about doing it? Can do online?

 

[andyhtc]

How does topping up of a parent's SA work and how will my parent receive the money that I top up monthly, please?