CPF Top up questions

[BBCWatcher]

I only saw only OCBC for transaction with CPF top up in CPF website.

I would take another look. Are you looking at e-Cashier?

 

[andyhtc]

I would take another look. Are you looking at e-Cashier?

Seriously I have no idea as I just clicked through the buttons in the CPF website. I have only started to explore this option today as I think my taxes will be going up again. I should be done it a few years earlier to save more.

 

[testerjp]

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.

If you decide to go for basic plan, go for BRS, and you pledge your pty in. If your SA account is in excess of prevailing BRS, and you wish to draw out as much cash as possible.

Amount from RSTU with all the induced interest can't be taken out.

If you top up your MA full, the contributions with its interest will overflow to SA. This amount going into the SA going by this route, can be withdrawn out after minus the BRS + pty pledge.

 

[elnewbie]

But what comes back to you after their demise is just the principal sum without interest.

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.

 

[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?

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!

Auto or not depends on individual's status. I have not come across any CPF website that gives clue on how actual payout is calculated.

The counter staff would be able to give an estimate of how much the payout is based on the person's age and RA balance. It seems the counter staff has a table or calculator but would not give it to us.

 

[henrylbh]

But what comes back to you after their demise is just the principal sum without interest.

Yes only principal will be returned. But nothing to be concerned if recipient is getting monthly payout as what is left is unlikely to contain interest.

From Nov 2013, I have transferred a total of 131k to my father's RA and the interest earned since then was $13.8k but at end of 2017 his RA balance is about 90k due to payout.

 

[streams]

top secret document? Why does CPF makes it so mysterious

 

[henrylbh]

top secret document? Why does CPF makes it so mysterious

They must have reasons. But after a few assumed numbers given to them for the estimated payout as well as understanding how my father payout increased from 297 to 690 to 1098 to 1611 and now 1861 each time I top up his RA, I now have a reasonably idea on how they calculate the expected payout under RSS (though not for CPF Life).

 

[foxer77]

i notice the medisave side was cap at 52k . hitting it all the contribution go to SA.

 

[chopra]

But what comes back to you after their demise is just the principal sum without interest.

im lost on this. what is this about?
transfer from My OA to parent's RA ...after parent's demise, only return principl sum? interest goes where

 

[JuniorLion]

i notice the medisave side was cap at 52k . hitting it all the contribution go to SA.

Medisave cap is 54.5 this year.

 

[The_Davis]

is there any tax rebate for topping up RA (RSS scheme)account for parents?

 

[BBCWatcher]

is there any tax rebate for topping up RA (RSS scheme)account for parents?

Yes, the donor may qualify for tax relief. IRAS provides those qualification rules here.

 

[henrylbh]

im lost on this. what is this about?
transfer from My OA to parent's RA ...after parent's demise, only return principl sum? interest goes where

If recipient does not drawdown or has not started drawdown, the RA will grow with interest. Only balance of principal sum will be returned to the Giver's OA, even if Giver dies before Recipient. Interest will go to the nominated beneficiary or estate of deceased.

Over the years, if recipient's RA intermingle with ins and outs of own balance, cash top ups, interest, grants, payouts, etc, principal sum of OA transferred to RA will be returned first. Any balance goes to estate/beneficiary.

 

[testerjp]

BHS rise at 4.8% per annum
Interest given is only 4%

This is another nonsense part of CPF and recently introduced in 2016. For those who want to overcommit with CPF.

Take note of this famous saying.
“And at the stroke of a pen they can take it over.”

I feel sad for our children in future when their FRS + BHS are going to rise beyond the millions.

 

[crimsontactics]

BHS rise at 4.8% per annum
Interest given is only 4%

This is another nonsense part of CPF and recently introduced in 2016. For those who want to overcommit with CPF.

Take note of this famous saying.
“And at the stroke of a pen they can take it over.”

I feel sad for our children in future when their FRS + BHS are going to rise beyond the millions.

To be fair, it stops increasing once you reach 65.

So just using year-by-year calculation is inaccurate.

Sent from . using GAGT

 

[andyhtc]

BHS rise at 4.8% per annum
Interest given is only 4%

This is another nonsense part of CPF and recently introduced in 2016. For those who want to overcommit with CPF.

Take note of this famous saying.
“And at the stroke of a pen they can take it over.”

I feel sad for our children in future when their FRS + BHS are going to rise beyond the millions.

Medical treatment costs will continue to go up due to inflation and longer lifespan. I feel that it is okay to let it grow in your own account so that you are responsible for your own health. Just treat it as a term plan insurance with a lower claim limit.

 

[Perisher]

To be fair, it stops increasing once you reach 65.

So just using year-by-year calculation is inaccurate.

Sent from . using GAGT

It rises with every new year... so theoretically, millions is bound to come for future gen... and it rises while they are still not born...

 

[crimsontactics]

It rises with every new year... so theoretically, millions is bound to come for future gen... and it rises while they are still not born...

Still stops at 65 while the 4% i/r continues on and after 65.

So the correct way is to wait till you die then calculate.

Sent from . using GAGT

 

[propertyinvest]

Anyone ALWAYS tops up CPF accounts at end of year to reduce taxes?