Five changes to CPF rules

[reddevil0728]

CPF Basic Healthcare Sum will be raised to $66,000 in 2022
https://www.straitstimes.com/singapore/consumer/basic-healthcare-sum-raised-to-66000-in-2022-cpf-interest-rates-to-remain

 

[highsulphur]

3k top up here I come!

 

[luei74]

Can only use cash top up MA right?

 

[PortaPumper]

3k top up here I come!

1 Jan 2022 then can top up.

 

[Nofear40]

Best is to top up end of the month right? As interest is calculated based on the lowest balance for the month

 

[BBCWatcher]

Best is to top up end of the month right? As interest is calculated based on the lowest balance for the month

Yes, generally, unless you're trying to beat or meet some other transaction to/from the same account.

 

[highsulphur]

Best is to top up end of the month right? As interest is calculated based on the lowest balance for the month

except for Jan when you are trying to top up after the new limit is set but before your contribution is credited for the month of Dec.

 

[Nofear40]

except for Jan when you are trying to top up after the new limit is set but before your contribution is credited for the month of Dec.

Thanks

 

[Froggyman]

except for Jan when you are trying to top up after the new limit is set but before your contribution is credited for the month of Dec.

For calculation of the lowest balance of the month ,what if said .. after midnight to 1st Jan is $50k, top up $3k in the morning, so the lowest balance of the month is consider $50k or $53k?
Thanks.

 

[highsulphur]

For calculation of the lowest balance of the month ,what if said .. after midnight to 1st Jan is $50k, top up $3k in the morning, so the lowest balance of the month is consider $50k or $53k?
Thanks.

you won't be top up until 1 Jan. So the lowest balance is 50k. But I assume your tax saving from that 3k top up is more than the interest lost for that 3k over one month.

 

[chiokcc]

you won't be top up until 1 Jan. So the lowest balance is 50k. But I assume your tax saving from that 3k top up is more than the interest lost for that 3k over one month.

With such low interest rate, I think interest for $3000 principal is pretty negligible...

Must also consider the interest that could be earn while put in CPF .....

 

[highsulphur]

With such low interest rate, I think interest for $3000 principal is pretty negligible...

Must also consider the interest that could be earn while put in CPF .....

That 3k won't earn any interest from cpf for the month it is topped up but the tax saving should be enough to compensate for that

 

[chiokcc]

The tax rebate for topping up of MA only applicable to self, right?

If I top-up parents' MA, not tax deductible?

 

[zoneguard]

If I top-up parents' MA, not tax deductible?

From 2022, the tax relief is given to the giver.

Givers to benefit from tax relief from top ups to loved ones’ MediSave

With effect from 1 January 2022, members who top up their loved ones’ MediSave will enjoy tax relief. Currently, tax relief is given to recipients of MediSave top-ups.

 

[chiokcc]

But tax rebate for self for topping-up parents' MA and/or RA is capped at $8k per year ....

 

[Okenba]

8k when you top up your own SA/MA.
8k when you top up loved one's SA/MA (spouse, sibling, parents. with salary restrictions)
Total 16k.

 

[chiokcc]

 

[chiokcc]

 

[chiokcc]

8k when you top up your own SA/MA.
8k when you top up loved one's SA/MA (spouse, sibling, parents. with salary restrictions)
Total 16k.

Is the $8k that is used to top-up own MA/SA subjected to the max contribution limit of $37740?

 

[chiokcc]

OK, I just read, MA top-up not subjected to annual limit .....