{"id":5765,"date":"2024-03-01T12:01:00","date_gmt":"2024-03-01T12:01:00","guid":{"rendered":"http:\/\/www.investollo.com\/?p=5765"},"modified":"2024-03-07T05:03:21","modified_gmt":"2024-03-07T05:03:21","slug":"cpf-cash-top-up-relief","status":"publish","type":"post","link":"https:\/\/www.areyouready.sg\/cpf-cash-top-up-relief\/","title":{"rendered":"CPF Cash Top-up Relief 2024"},"content":{"rendered":"\n<p><strong>Last updated: March 2024<\/strong><\/p>\n\n\n\n<p><strong>Key Takeaways:<\/strong><\/p>\n\n\n\n<ul>\n<li>Topping up your CPF Special Account (SA) with cash can lead to tax relief.<\/li>\n\n\n\n<li>This strategy benefits long-term retirement planning and immediate tax savings.<\/li>\n\n\n\n<li>Understanding the rules and limits is essential for maximizing these advantages.<\/li>\n<\/ul>\n\n\n\n<p><strong>Introduction:<\/strong><br>Maximizing your financial strategy in Singapore can include leveraging your CPF Special Account. This concise overview explains how cash top-ups to your CPF SA can not only enhance your retirement nest egg but also provide welcome income tax relief.<\/p>\n\n\n\n<p><strong>Featured Snippet:<\/strong><br>Can topping up your CPF Special Account (SA) with cash reduce your income tax in Singapore? Yes, cash top-ups to your CPF SA are eligible for tax relief, subject to certain conditions and caps, thereby offering a dual benefit of tax savings now and increased retirement funds for the future.<\/p>\n\n\n\n<p><b>Top-Up Statistics<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In 2015, CPF account holders topped up their families\u2019 CPF accounts by $649.9 million, 32% more than in 2014. CPF account holders also transferred $289.1 million of their own money from their Ordinary Account (OA) to their Special Account (SA), an increase of 12% from 2014.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Retirement Sum Top-Up Scheme<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">A scheme that allows you to top up your own CPF account or\/and your family members. <\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">Under this scheme, your employer can also voluntary contribute more into your CPF to be eligible for tax deduction.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">The money goes into Special Account if the fund receiver (yourself or\/and your family members) is below age 55.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">The money goes into Retirement Account if the fund receiver is age 55 or above.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">When you perform a cash top up for yourself or your family members, you are eligible for tax relief of up to $14,000 per calendar year. However, top up above the Full Retirement Sum (FRS) are not eligible for the tax relief. This means that if you intend to top-up till the Enhanced Retirement Sum (ERS), the difference between FRS and ERS is not eligible for tax relief.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.areyouready.sg\/wp-content\/uploads\/2022\/11\/photodune-1691327-asian-business-people-using-a-digital-touch-pad-s.jpg\" alt=\"CPF Cash Top-up Relief\" class=\"wp-image-5766\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Topping Up Spouse\u2019s CPF Account<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">You may top up your spouse\u2019s CPF account using your CPF money or cash.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">If you are using cash, refer to the \u2018Retirement Sum Top-Up Scheme\u2019.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">For top ups using your CPF funds, you may transfer funds in excess of the prevailing Basic Retirement Sum (BRS) or your cohort\u2019s BRS to your spouse\u2019s CPF account.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">This transfer however, does not qualify for tax relief.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Assuming that you have met the prevailing BRS while your spouse has less than $60,000 in his\/her CPF account, transferring the funds in excess of your BRS to them will increase the net interest both of you will receive in total.<\/span><\/p>\n\n\n\n<p>Read also: <a href=\"https:\/\/www.areyouready.sg\/treating-cpf-special-account-retirement-account-bond-investment\/\" data-type=\"post\" data-id=\"6378\">How to invest your CPF funds in Singapore?<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.areyouready.sg\/wp-content\/uploads\/2022\/11\/photodune-4066141-happy-family-using-tablet-pc-s.jpg\" alt=\"top up cpf singapore\" class=\"wp-image-5767\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Earning Higher Interest<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Excess funds lying in your OA can be transferred to your SA in order to earn a higher interest.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">Currently, the SA pays an interest of up to 6% while OA pays up to 4.5% in interest.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Moreover, the earlier you top up, the more interest your CPF funds will earn; allowing the interest you earn to compound over time. You could even set up a GIRO account to transfer money from your bank account to your CPF account periodically (monthly to annually).<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Investing your CPF Monies<\/b><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">There are several restrictions as to how much you can invest using your CPF money.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">Only funds in excess of $20,000 in your OA and $40,000 of SA can be used for investments.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">While there has been reports recently that CPF account holders are better off if they had left their money in CPF than to invest it, these reports often tend to forget that timeline plays a very important role in determining investment success.<\/span><\/p>\n\n\n\n<p>Read also: <a href=\"http:\/\/www.investollo.com\/things-must-know-cpf-housing-loan\/\" target=\"_blank\" rel=\"noopener nofollow\">Things you MUST know about using CPF for Housing Loan<\/a><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In the short-term, the CPF accounts can provide a smooth and consistent return on your money while stocks tend to be more volatile and can result in paper losses.<\/span><span style=\"font-weight: 400;\"><br><\/span><span style=\"font-weight: 400;\">However, in the long-term, stocks provides the best returns out of most assets classes. The key thing here is to diversify and hold it for the long-term instead of trading in and out of the market. Buying into an index fund (like <a href=\"http:\/\/www.investollo.com\/exchange-traded-funds-etfs\/\" target=\"_blank\" rel=\"noopener nofollow\">STI index fund<\/a>) and holding it over the long-term can actually provide you with better returns than CPF\u2019s interest. The emotional temperament you must have to hold during the down times is more paramount than anything else.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last updated: March 2024 Key Takeaways: Introduction:Maximizing your financial strategy in Singapore can include leveraging your CPF Special Account. This concise overview explains how cash top-ups to your CPF SA can not only enhance your retirement nest egg but also provide welcome income tax relief. Featured Snippet:Can topping up your CPF Special Account (SA) with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,5,12,13],"tags":[],"_links":{"self":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts\/5765"}],"collection":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/comments?post=5765"}],"version-history":[{"count":1,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts\/5765\/revisions"}],"predecessor-version":[{"id":8378,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/posts\/5765\/revisions\/8378"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/media\/5768"}],"wp:attachment":[{"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/media?parent=5765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/categories?post=5765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.areyouready.sg\/wp-json\/wp\/v2\/tags?post=5765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}