Five changes to CPF rules

[zoneguard]

If it overflow, I think the excess will be flowing into SA or OA....am I right?

CPF e-cashier should block the transaction once the value exceed the limit.

 

[fr33d0m]

I think what iMac is saying is that he tops up 37k to MA whereby MA gets filled up to the BHS amount say 66k for 2022 then (37k - 3k) = 34k gets overflowed to SA and/or OA. Is this a way to squeeze in more funds to SA and OA not restricted by the Annual Limit since the 37k was topped up via MA (which is not subject to Annual Limit in 2022) ?

Doubt CPF will allow to top up 37K when BHS limit is only 3K away.

 

[Okenba]

My MA already reached BHS $63K....in Jan 2022, I thinking of topping up another $37K into MA since it will not be subjected to the mandatory CPF contribution cap.

If it overflow, I think the excess will be flowing into SA or OA....am I right?

CPF Rules is so oconfusing.

I'm guessing you are basing this on how MA interest is treated. If MA is at BHS, interest will overflow to SA. However, if SA is at FRS, MA interest overflow will go to OA instead.

As for over-topping-up MA, I believe it should be treated like how it is treated now. It does not overflow, but is returned to you without interest.

 

[sweetbearfire]

IRAS would have detected the net top-up to MA in 2021 year of assessment as $0, and $3k in 2022 year of assessment because the income tax is computed around March to April each year.

if i understand bbc's hack, it is $0 in tax relief for 2021 but $6,000 for 2022.

 

[hwmook]

IRAS would have detected the net top-up to MA in 2021 year of assessment as $0, and $3k in 2022 year of assessment because the income tax is computed around March to April each year.

The idea is to use $3000 to block further money going into MA this year and when the money get refunded next year, you can top up again so you get 2 opportunities to top up.

 

[andyhtc]

The idea is to use $3000 to block further money going into MA this year and when the money get refunded next year, you can top up again so you get 2 opportunities to top up.

I think I get what it means. I topped up a bit to my MA this year up to $63k accidentally. I think it will be refunded early next year. Let me pull off this trick to see if it works

 

[Okenba]

With inflation the way it is, perhaps we will see more changes to CPF moving ahead.
Maybe larger than usual increase in BHS, BRS/FRS/ERS?
Higher contribution cap?
Higher interest rates? =D

 

[swathe]

i am still confused if contributing to BHS is still subjected to CPF annual limits

 

[andyhtc]

The government is likely to top up the MA of the lower income group. This is due to higher inflation of medical costs.

 

[luei74]

Didn't know if SA hit FRS, the MA interest will go to OA instead

 

[Value.Matrix]

Didn't know if SA hit FRS, the MA interest will go to OA instead

Good for housing repayment. Also good for investing OA. Why not?

 

[highsulphur]

How does AMP arise currently? When you contribute only to your RA after CPF Life started?

Also for self employed, can you contribute to MA without consideration for annual limit after 2022?

 

[BBCWatcher]

How does AMP arise currently? When you contribute only to your RA after CPF Life started?

Currently it doesn't. The CPF Board changed that particular rule effective November 1, 2021. In the (now past) when you added dollars to a CPF RA after CPF LIFE payouts started you would receive Additional Monthly Payouts (AMPs) by default. You also had the option to recompute your CPF LIFE payout to increase it for life.

Also for self employed, can you contribute to MA without consideration for annual limit after 2022?

Starting on January 1, 2022, the CPF Annual Limit no longer applies to Voluntary Contributions to MA. That's for every CPF member including self-employed individuals.

 

[highsulphur]

Currently it doesn't. The CPF Board changed that particular rule effective November 1, 2021. In the (now past) when you added dollars to a CPF RA after CPF LIFE payouts started you would receive Additional Monthly Payouts (AMPs) by default. You also had the option to recompute your CPF LIFE payout to increase it for life.

Starting on January 1, 2022, the CPF Annual Limit no longer applies to Voluntary Contributions to MA. That's for every CPF member including self-employed individuals.

Currently what happens when we contribute to RA between 55 and just before 65? Or if we contribute to CPF via employment during this period? Does contribution go to all 4 accounts?

 

[zoneguard]

Currently what happens when we contribute to RA between 55 and just before 65?

Stays in RA. When you join CPF LIFE by opting for a particular plan(basic/standard/escalating) and age to start payout, based on the plan specifics, the RA balance will be used for LIFE premium deduction.

Contributions (employment or voluntary) go to O/S/MA as per the current allocation rules and won't end up in RA.

 

[highsulphur]

Stays in RA. When you join CPF LIFE by opting for a particular plan(basic/standard/escalating) and age to start payout, based on the plan specifics, the RA balance will be used for LIFE premium deduction.

Contributions (employment or voluntary) go to O/S/MA as per the current allocation rules and won't end up in RA.

Thanks. The max RA can has is the prevailing ERS rate? Can the interest earned on the RA balance exceed the increase the ERS across the years?

 

[zoneguard]

The max RA can has is the prevailing ERS rate? Can the interest earned on the RA balance exceed the increase the ERS across the years?

https://www.cpf.gov.sg/member/faq/g...t-is-the-maximum-amt-of-top-ups-i-can-receive
Note the ** details. Max RA balance can exceed prevailing ERS.

 

[iMac]

https://www.cpf.gov.sg/member/faq/g...t-is-the-maximum-amt-of-top-ups-i-can-receive
Note the ** details. Max RA balance can exceed prevailing ERS.

Once RA reached ERS max....the excess interest earned will overflow back into OA....see picture below...

 

[zoneguard]

Once RA reached ERS max....the excess interest earned will overflow back into OA....see picture below...

The picture refers to contributions to MA above BHS and what happens. Indeed there is flow to RA for the MA contributions if RA is below BRS/FRS.

The earlier discussion with highsulphur was on cash top-ups to RA and the applicable limit.

 

[BBCWatcher]

Contributions (employment or voluntary) go to O/S/MA as per the current allocation rules and won't end up in RA.

Unless a "second sweep" from SA/RA applies, meaning your RA hasn't been funded at lesst to the Full Retirement Sum (or BRS with property pledge/charge) that prevailed on your 55th birthday.