SA overflow

[reddevil0728]

You lose income tax relief if you have chargeable income.

why so? above FRS there is no tax relief to begin with right?

 

[BBCWatcher]

Not your pattern to omit restriction of VC eligible for tax relief

I'm missing your point. What point are you trying to raise?

 

[kkcheng77]

So what will happen someone continue to vc till SA hit ERS. Can he continue vc to break the limit? Where will the interest flow to if SA cannot be more than ERS?

 

[zoneguard]

So what will happen someone continue to vc till SA hit ERS. Can he continue vc to break the limit? Where will the interest flow to if SA cannot be more than ERS?

ERS is the top-up limit for RA.
FRS is the top-up limit for SA.

For VC to all 3 accounts, annual limit $37,740 applies.

Top-ups and VC are treated differently.

 

[culture_counter]

Agree that ERS is the topup limit for RA

 

[henrylbh]

So what will happen someone continue to vc till SA hit ERS. Can he continue vc to break the limit? Where will the interest flow to if SA cannot be more than ERS?

VC (and MC), subject to annual limit will be allocated to OA/MA/SA. The contribution that is allocated to SA has no limit unlike MA. When MA has reached BHS, the contribution will go OA unless SA is below FRS.

 

[dragonics]

If ur MA and SA already hit cap limit. Likely chance you wont able topup even on begining of next year limit. Cos your interest will be credited on 31/dec and it would have crossed the new limit for the following year.

The only way you can topup if only returning your “mortgage loan” if u use cpf to pay for housing.

 

[Value.Matrix]

If ur MA and SA already hit cap limit. Likely chance you wont able topup even on begining of next year limit. Cos your interest will be credited on 31/dec and it would have crossed the new limit for the following year.

The only way you can topup if only returning your “mortgage loan” if u use cpf to pay for housing.

Need to be precise when you mention. Not likely.

You confirm cannot do RSTU (retirement sum topping up) to RA if it hits ERS (but as interest is not counted), the yearly increase still allows you to top up to RA.

For SA (before 55), RSTU limit is till FRS, and that includes the interest earned yearly. Hence once you hit FRS, you cannot do RSTU any longer.

However, through employer/volunteer contribution, its allocated at the cpf contribution rate at your age, up to annual limit. Be specific and concise

 

[dork32]

Not 4+% as the amount of top up to ERS is way way above first 60k. In topping up also must consider the increased life annuity premium for increased payout especially if top-up is from SA.

you are right that when someone tops up to ers, he would have more than 60k. any amount top up will earn 4% and that it. whether you top up or not. you still earn the ++ portion.

this is again another garmen is trying to bluff people that cant count.

as for the lost of interest to the lifelong account. i dont want to talk too much. some people would say that there is no loss. this is the amount that you have to pay for the insurance.

 

[walsly]

off topic - does anyone know how cpf ma/oa compounds? monthly by having its annual IR divided by 12? or annually? i tried to calculate it via excel using the latter but my compounded value is very different from some of the free online cpf calc i found on the web

 

[fr33d0m]

off topic - does anyone know how cpf ma/oa compounds? monthly by having its annual IR divided by 12? or annually? i tried to calculate it via excel using the latter but my compounded value is very different from some of the free online cpf calc i found on the web

CPF interest based on my own calculation is sum of the lowest balance every month / 12 * interest rate.

so only compound annually.

 

[zoneguard]

tried to calculate it via excel using the latter but my compounded value is very different from some of the free online cpf calc i found on the web

Yes, as @fr33d0m mentioned, interest accrued monthly is calculated on the lowest balance each month and the compounding is done annually. There is also extra interest on 1st 60K of combined balances and the overflow rules of MA for BHS. BHS also increases every year. This calculator tries to compute the extra interest for you.

 

[Andrew833]

Yes, as @fr33d0m mentioned, interest accrued monthly is calculated on the lowest balance each month and the compounding is done annually. There is also extra interest on 1st 60K of combined balances and the overflow rules of MA for BHS. BHS also increases every year. This calculator tries to compute the extra interest for you.

Yes, the overflow will happen on end of the year. Just before MA and SA increase cap.

 

[zoneguard]

Yes, the overflow will happen on end of the year

If you check your CPF statements, the overflow for MA happens all year long as long as MA has hit BHS.

 

[BBCWatcher]

There's at least one exception to the lowest balance aspect of CPF interest calculations: when you transfer dollars from your Ordinary Account into your Special Account you earn the higher Special Account interest rate starting from the first day of the calendar month within which you make the transfer.

The general "best practice" for cash deposits into CPF is to make them within the last couple days of the calendar month, making sure they're actually credited within that calendar month. (PayNow QR works well for this.) That's because you don't earn any extra CPF interest for making the deposit any earlier within the month, but you do lose whatever daily bank interest you could be earning on those dollars. Lump sum CPF cash withdrawals are best timed within the first couple days of the calendar month for exactly the same interest earning reasons but in reverse. There are possible exceptions to this general advice if there are other flows in or out of your CPF accounts.