From OA to SA

[edwinttt1978]

my account currently has
OA 142k
SA 108K
MA 50K
i have cash earning 1% & 0.8% in CIMB which is pitiful.
my property is fully paid.
i'd like to maximize the compounding interest in both OA & SA.
how should i go about it?
i can only find info on cash top ups to SA, cant seem to find out how to top up to OA.
thanks

1) Transfer $58k from OA to SA now;
2) Top up $2k cash into MA now.

 

[BBCWatcher]

1) Transfer $58k from OA to SA now;

No, it's better to top up $7K to SA for the tax relief first. Then consider shifting OA funds to SA, up to the Full Retirement Sum ($166,000).

2) Top up $2k cash into MA now.

Only if the questioner expects not to exceed the CPF Annual Limit.

 

[edwinttt1978]

No, it's better to top up $7K to SA for the tax relief first. Then consider shifting OA funds to SA, up to the Full Retirement Sum ($166,000).


Only if the questioner expects not to exceed the CPF Annual Limit.

Also, only if the overall personal income tax relief cap does not exceed $80,000.

The trouble with 'ifs' and 'buts' is that they slow down progression, making decisions unnecessarily difficult, sometimes even painful.

Like I said before, make the decision swiftly and decisively.
Transfer from OA to SA. Transfer early, transfer now.

 

[a4973]

Also, only if the overall personal income tax relief cap does not exceed $80,000.

The trouble with 'ifs' and 'buts' is that they slow down progression, making decisions unnecessarily difficult, sometimes even painful.

Like I said before, make the decision swiftly and decisively.
Transfer from OA to SA. Transfer early, transfer now.

actually i am quasi familiar with OA to SA top ups
i would like to top up OA as well to enjoy the 2.5% but does not seem to be possible?

 

[doody_]

actually i am quasi familiar with OA to SA top ups
i would like to top up OA as well to enjoy the 2.5% but does not seem to be possible?

Only possible if you do not hit the CPF Annual Limit.

 

[a4973]

Only possible if you do not hit the CPF Annual Limit.

that is the $37,740 employer mandatory + voluntary contribution limit right?
yes i do understand the above, so please advise how do i voluntary contribute to OA & SA?
or should i transfer OA to SA to max out SA then contribute to OA up to CPF Annual Limit?

 

[elnewbie]

If you had used CPF to buy your property, you can topup OA. It's known as a capital repayment.

actually i am quasi familiar with OA to SA top ups
i would like to top up OA as well to enjoy the 2.5% but does not seem to be possible?

 

[a4973]

actually the shortest way i have figured is to just use cash top up direct to SA rather than transfer OA to SA then find ways to top up OA.
is this the most feasible?

 

[elnewbie]

It's not an easy question to answer as there are various considerations.

1. Cash topups to SA will only be streamed out into monthly payouts when you reach 65. You can't do lump sum withdrawal for such cash topups. Neither can these cash topups be considered as the BRS component.

2. OA to SA transfer can eventually be withdrawn in lump sum, but OA has other uses such as for properties, education etc.

actually the shortest way i have figured is to just use cash top up direct to SA rather than transfer OA to SA then find ways to top up OA.
is this the most feasible?

 

[a4973]

It's not an easy question to answer as there are various considerations.

1. Cash topups to SA will only be streamed out into monthly payouts when you reach 65. You can't do lump sum withdrawal for such cash topups. Neither can these cash topups be considered as the BRS component.

2. OA to SA transfer can eventually be withdrawn in lump sum, but OA has other uses such as for properties, education etc.

1. my understanding is upon 55 , the OA & SA will be merged into RA & i can withdraw $xx above the Full Retirement Sum? if this understanding is correct then it does not seem to tally with your Point 1.
2. i wont be using OA anymore other than to accumulate for my retirement.

 

[henrylbh]

actually the shortest way i have figured is to just use cash top up direct to SA rather than transfer OA to SA then find ways to top up OA.
is this the most feasible?

No way can you top up OA. But you can make voluntary contribution within annual CPF Limit and the VC will go into OA, SA and MA according to age group.

You can use cash to refund OA fully or partially, with or without interest, that has been used for housing.

 

[endlssorrow]

1. my understanding is upon 55 , the OA & SA will be merged into RA & i can withdraw $xx above the Full Retirement Sum? if this understanding is correct then it does not seem to tally with your Point 1.
2. i wont be using OA anymore other than to accumulate for my retirement.

My understand with same as u. Anything above the min sum, the rest can take out.

 

[henrylbh]

1. my understanding is upon 55 , the OA & SA will be merged into RA & i can withdraw $xx above the Full Retirement Sum? if this understanding is correct then it does not seem to tally with your Point 1.
2. i wont be using OA anymore other than to accumulate for my retirement.

No OA and SA will not be merged into RA. The accounts will still be there after 55, if there are still fund. They will move fund from SA to RA and if not enough, fund from OA will go to RA.

If SA is above FRS, the excess will remain in SA and can be withdrawn anytime.

 

[wisely98]

That means to say if my SA is above FRS, my OA will be left untouched to earn 2.5%? Can I withdraw the OA then?

No OA and SA will not be merged into RA. The accounts will still be there after 55, if there are still fund. They will move fund from SA to RA and if not enough, fund from OA will go to RA.

If SA is above FRS, the excess will remain in SA and can be withdrawn anytime.

 

[a4973]

can a kind soul shed some light on this statement...

"1. Cash topups to SA will only be streamed out into monthly payouts when you reach 65. You can't do lump sum withdrawal for such cash topups. Neither can these cash topups be considered as the BRS component. "

 

[henrylbh]

That means to say if my SA is above FRS, my OA will be left untouched to earn 2.5%? Can I withdraw the OA then?

After meeting FRS at 55, any balance in SA and OA will remain where they are and earn interest accordingly. Withdrawal is not auto. Must make request. Can withdraw any amount based on default of withdrawals.

 

[a4973]

so are there pros & cons wrt to topping SA with cash vs with OA? just within the context of cpf. understand if use cash may lose out on other opportunities outside cpf.
i am only looking towards maximizing for retirement via lump sum withdrawal at 55 & thereafter monthly payouts, not considering / interested in property , education , CPFIS

 

[elnewbie]

For FRS, anything about the FRS, you can withdraw in lump sum including cash topups made to SA.

For BRS, not possible to lump sum withdraw the cash topups made to SA.

Hope this explanation is clearer.

can a kind soul shed some light on this statement...

"1. Cash topups to SA will only be streamed out into monthly payouts when you reach 65. You can't do lump sum withdrawal for such cash topups. Neither can these cash topups be considered as the BRS component. "

 

[elnewbie]

How old are you this year ?

so are there pros & cons wrt to topping SA with cash vs with OA? just within the context of cpf. understand if use cash may lose out on other opportunities outside cpf.
i am only looking towards maximizing for retirement via lump sum withdrawal at 55 & thereafter monthly payouts, not considering / interested in property , education , CPFIS

 

[a4973]

How old are you this year ?

coming to 50 in Dec