do u do SRS?

[Sausage]

I would put $15.3k into SRS every year but I agree that SRS is not suitable for everyone. everyone has their own needs and requirements.
If 15.3k tax relief (capped at 80k, if I remember correctly) and by putting in SRS drops a tax bracket for you, then do it. In my employment, I have a fairly accurate idea of my taxable income / relief (doesn't change much) before end of the year, so I can decide if putting aside $15.3k is worth it.
I also find that this is not always mentioned, whatever money you put inside, can be withdrawn tax free (less than 40k per year) over a spread of 10 years. So put it simply - project what you will have inside then divide by 10 and as long as amount is less than 40k per year, then it is tax free.
Supposing you have 400k (contribution + earnings) in SRS at retirement age, then you can take out 40k per year over 10 years.
40,000/12 = 3,333 per month - I think this is decent amount to supplement income during retirement.
To get to 400k, you will need about 26 years of saving 15.3k per year, if that's the target, then one should start mid 30s.

if earning 150k a year is it still advisable for them to put 15.3k in srs? it doesn't seem to drop down into the previous tax bracket right


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[ringrain_78]

if earning 150k a year is it still advisable for them to put 15.3k in srs? it doesn't seem to drop down into the previous tax bracket right


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What about your relief? can add that in and see if you add in 15.3k, will it hit closer to 120k. Maybe 30k in relief is possible?

150k - you will be paying 7,950 + 4,500 = 12,450.

I am not a tax expert - I might be wrong.

 

[GoodEnergy]

SRS only make sense if you are paying at 11.5% income tax... means your assessable income after all the eligible deductions is >95.3K (80K + 15.3K)

A small correction...the 15.3K SRS is included in the max 80K tax relief (not 80K + 15.3K)

 

[dry_county]

I have been maxing out SRS every year since 2012.....

 

[cosmothecat]

I have been maxing out SRS every year since 2012.....

Rich boy spotted

 

[Hypernova]

if earning 150k a year is it still advisable for them to put 15.3k in srs? it doesn't seem to drop down into the previous tax bracket right


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assuming no count relief.

first 120k tax is $7,950. your remaining $30k is taxed at 15% or $4,500, total tax is $12,450.

you put srs, first 120k tax is $7,950. your remaining $14,700 is taxed $2,205, total tax is $10,155.

so you think got use or not?

 

[Foxtrot]

no not sti, i buyed lion city HK Tech etf before winnie crack down

I also bought this using cash... Still having paper loss also....

 

[dev_stg_prd]

For high income earners, the best way is to donate - it's 2.5x and deduct directly from assessable income

Like how high need to take note of this ah?

 

[mcylo]

have lah...but only $1

 

[KnyghtRyder]

got save so much meh
anyway i went to play play n put in a bit then sit there do nothing earning that mere interest until one agent told me to buy ssb then i go n buy a bit lo
some went to buy t bills but now t bills all time low right
LLST liao
$ put in cant take out

if u ask me i think use the $ buy gold/silver better than put in SRS
tax also dont know save how much , if any!!! (still dont know how to calculate)

You don't know how to calculate but you don't think it will save a lot.

Just take $15,300 times your tax bracket lor.. in Singapore it ranges from 0 to 24%.

So we are saving maybe up to a $3.6 k

More if it helps you to drop a tax bracket

 

[KnyghtRyder]

Srs or cpf sa top up for tax relief not worth it
Even u at high income bracket, it is like 11.5% x 8000= $920 only but ur money stuck until 65

Not sure how you calculating your tax reliefm

 

[Dividends]

I have been maxing out SRS every year since 2012.....

This marks my 6th year of topping up, I calculated that I have 5 more years of topup before I stop if I want to limit my withdrawals to $80k per year ($550 annual tax payable) based on a return of 5% p.a. until I'm 62. Though if returns end up being higher, I can just withdraw more and pay more tax, I'll still save more on taxes now unless I need to withdraw >$300k a year.

 

[ralliart_ray]

if bonus come in, shall top up SRS 15.3k and also $8k to CPF

 

[orlengtao]

I also bought this using cash... Still having paper loss also....

Hi5

 

[KnyghtRyder]

if earning 150k a year is it still advisable for them to put 15.3k in srs? it doesn't seem to drop down into the previous tax bracket right


Read HWZ Forum Rules!

Depends what other reliefs you are entitled to claim

 

[Laneige]

Depends on you tax bracket.

https://www.iras.gov.sg/taxes/indiv...ncy-and-tax-rates/individual-income-tax-rates

If u contribute the max 15.3k this year:

- At 7% tax bracket, tax savings = $1071
- At 11.5% tax bracket, tax savings = $1759.50

assuming one earning taxable
150k =
first 120k - $7950
30k = 15% = $6000?

if apply srs max 15300 = $14700 @ 15% = $2205?

so total saving = $3795???

----------------------------------
if $130k then it will reduce higher %?
130k- 15300 = $114700?

so the bracket will be seeing 11.5% instead of 15%, resulting in higher % savings?

eg
130k = $7950 + 10k@ 15% = $9450

if contribute srs = $114700

80k - $3350
34700 @ 11.5% = $3990.5
Total = $7340.50

Savings = $2109.50?

so shld be higher tier the savings is ore since the % is higher ... ie 11.5% -> 15% -> 18%

but i dont understand why ppl say shld contribute either first few day or last few days of the yr...
why ah

ps dont know if my calculation correct or not

First $80,000 Next $40,000	- 11.5	3,350 4,600
First $120,000 Next $40,000	- 15	7,950 6,000
First $160,000 Next $40,000	- 18	13,950 7,200

 

[Laneige]

Actually not very true, every start of the year CPF MA will shift Goal Post. I will always use that chance to top up my BHS to the max for tax relief.

simi is BHS

 

[SayPorkGuy]

thank god imma not working as a hikkikomori and got no income tax. also thank pappies for no capital gains tax.

 

[Laneige]

i just read somewhere simi retirement thing the payout delayed to 70? i dont know whats that.. i need to read up first.... imagine they bring goal post further... thats a main concern because the $ locked in is fixed unless the srs scheme part wont be affected

assuming no count relief.

first 120k tax is $7,950. your remaining $30k is taxed at 15% or $4,500, total tax is $12,450.

you put srs, first 120k tax is $7,950. your remaining $14,700 is taxed $2,205, total tax is $10,155.

so you think got use or not?

i tihnk no use. to put 15300 and save only $2295 .... 15% hmmmmm
prob is SRS cant do much if ssb "wiped out"
left etf etc... n now market risky .......

 

[dev_stg_prd]

I have been maxing out SRS every year since 2012.....

how much is it worth now? got 400k?