CPF Top up questions

[JuniorLion]

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?

Cpf will automatically calculate it and pay out till depletes to 0. For application, it is online if you wish to purchase annuity CPF LIFE).

 

[JuniorLion]

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

All you need to do is to top up online and key in your parent'sNRIC number. CPF BOARD knows that he/she is your larent. After topping up, your parent will receive the money in his/her SA. Takes a few days to show up, though.

 

[andyhtc]

All you need to do is to top up online and key in your parent'sNRIC number. CPF BOARD knows that he/she is your larent. After topping up, your parent will receive the money in his/her SA. Takes a few days to show up, though.

Thanks for the fast reply. Once it is in the SA, CPF will automatically credit into his/her saving account? I'm thinking of crediting monthly into my parent's SA rather than giving cash.

 

[JuniorLion]

Thanks for the fast reply. Once it is in the SA, CPF will automatically credit into his/her saving account? I'm thinking of crediting monthly into my parent's SA rather than giving cash.

SA is Special Account, not savings account.

Yes, cpf will pay out a monthly amount to your parent's saving account.

 

[BBCWatcher]

I don’t think the CPF Board worries about the family relationships or even necessarily knows about them. You just tell CPF who the recipient is (NRIC), and they do it. It could be somebody you met once on a bus — it doesn’t have to be a parent.

IRAS might need to be informed when the time comes, when you file your tax return and are trying to claim tax reliefs.

When you top up somebody's Retirement Account (it’s their Retirement Account starting on their 55th birthday), yes, it’s credited pretty quickly — in a couple business days, usually. Yes, you can top up every month. Or every week, every hour.... As often as you want, up to the member’s limit (Enhanced Retirement Sum; Full Retirement Sum is the limit for possible tax relief qualification). The member might need to contact CPF periodically to get payouts adjusted, if the member is receiving payouts (e.g. CPF LIFE). If the member wants to adjust payouts, of course.

 

[JuniorLion]

I don’t think the CPF Board worries about the family relationships or even necessarily knows about them. You just tell CPF who the recipient is (NRIC), and they do it. It could be somebody you meant once on a bus — it doesn’t have to be a parent.

It has to be:
a) parent/grandparent
b) spouse
c) sibling

 

[BBCWatcher]

It has to be:
a) parent/grandparent
b) spouse
c) sibling

No, it doesn’t. The recipient can be any CPF member. You’re summarizing the tax relief-related list.

In Singapore, anecdotally, a generous/wealthy great aunt might top up her newborn great niece’s CPF Special Account, all the way up to the Full Retirement Sum ($171,000 in 2018). That’s allowed. Any CPF member can be the recipient, even a stranger. All you need is his/her NRIC.

Go ahead and try it! Offer to top up your cousin’s Special Account by $1. It’ll work.

 

[greddy88]

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

Dun be so cryptic leh.. do share share.
Looks like it's Investment right?
Throw inside also don't guarantee don't lose money..

 

[andyhtc]

SA is Special Account, not savings account.

Yes, cpf will pay out a monthly amount to your parent's saving account.

This is good. I'm looking more at tax reduction.

 

[BBCWatcher]

I'm looking more at tax reduction.

It’s one of the best deals around, especially if you can arrange for that parent or grandparent to nominate you as his/her CPF beneficiary...and to die soon, and suddenly, without Medisave spending.

Yes, I’m joking.

 

[streams]

Noted and thanks for the info. I tried searching hard on CPF website and couldn't find answer to increased payout. Since it's automated calculation.. I can be at ease. Cheers!

 

[andyhtc]

It’s one of the best deals around, especially if you can arrange for that parent or grandparent to nominate you as his/her CPF beneficiary...and to die soon, and suddenly, without Medisave spending.

Yes, I’m joking.

I will be using this CPF method to reduce my tax since I have been giving a monthly allowance to my parents.

However, CPF requires OCBC account for the transaction so there is still a step required for me to set up an OCBC Internet banking account.

I learn quite a lot of tips in HWZ forums on investment, insurance, taxes etc

 

[henrylbh]

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?

Specific to your mum case under old RSS, she will continue to receive same monthly payout as before, AFTER you do a top up to her RA.

If the top up is sufficiently large, she can request for a higher monthly payout, calculated to deplete the RA balance, after top up, over a period of about 5 years.

If she currently has no payout and you top up her account, she will not get payout automatically. She needs to make a request and the top up will be paid over a period of 5 years. However, there is min payout and that may exhaust the RA in less than 5 years.

There is no option of CPF Life for her due to her age.

 

[henrylbh]

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.

Though the person is asking what is the reason to put into MA and not SA, I have not said which one to choose. I merely stated the attributes of each and it's up individuals to decide accordingly to the circumstances. In other words, no good or bad for either one, except that there is tax relief (which I failed to mention, including some other attributes for simple understanding) for SA/RA top up compare MA top up.

In my case, I top up parent's RA by transfer of my OA to RA with no tax relief for a reason - balance top up will come back to me upon the recipient demise and that's more important than tax relief as it concern an amount of more than 100k. With the cash saved, I make voluntary contribution to my own account without tax relief.

 

[BBCWatcher]

There is no option of CPF Life for her due to her age.

Yes, this caveat applies to Streams’s mother. CPF members born before 1958 have/had the option (not obligation) to join CPF LIFE, but they must do it/must have done it before their 80th birthdays.

 

[zuppeur]

If she currently has no payout and you top up her account, she will not get payout automatically. She needs to make a request and the top up will be paid over a period of 5 years. However, there is min payout and that may exhaust the RA in less than 5 years.

There is no option of CPF Life for her due to her age.

Isnt cpf auto payout once a member reach age 70 regardless any application made?

 

[mojipei]

However, CPF requires OCBC account for the transaction so there is still a step required for me to set up an OCBC Internet banking account.

Can you elaborate how OCBC comes into the picture? Does CPF requires that you set up a GIRO payment for the monthly payment to your parents? I suppose you will also get tax relief and does IRAS requires you to set up that arrangement as well?

Thank you

 

[BBCWatcher]

Can you elaborate how OCBC comes into the picture?

I’m glad you asked, because that’s confusing to me as well.

CPF e-Cashier works if you have a bank account with DBS/POSB, OCBC, UOB, Citibank, and Standard Chartered. Other than perhaps raising your payment limit, you’re not required to do much of anything on the bank side except have enough money in your account.

If you go to an AXS kiosk then any NETS card works to make the contribution. You just need to respect whatever your NETS daily limit is, or ask your bank to raise the limit if necessary. Most (not quite all) banks in Singapore issue NETS-compatible ATM/debit cards.

Or you can send a paper check to CPF (by postal mail, or drop it off), and send it with CPF Form RSS-TP.

 

[andyhtc]

Can you elaborate how OCBC comes into the picture? Does CPF requires that you set up a GIRO payment for the monthly payment to your parents? I suppose you will also get tax relief and does IRAS requires you to set up that arrangement as well?

Thank you

I only saw only OCBC for transaction with CPF top up in CPF website. It is rather confusing too but I'm okay with setting up a saving account since I have some fixed deposits in OCBC.

 

[henrylbh]

Isnt cpf auto payout once a member reach age 70 regardless any application made?

You are rite. The new rule from this year, there will be auto payout from age 70 even if she decides not to draw down.

So in your mum case, if she had no more payout by the time you top up, payout would be auto based on top up amount till RA is exhausted. But if she is having payout before you top up, payout will continue at same amount unless she requests for higher payout.