If you are an employee, this is for you!
There are 2 CPF schemes for you to voluntarily top up money to your CPF account.
They are the 'Retirement Sum Top Up Scheme' and the 'Voluntary Contribution Scheme'.
So what's the difference?
Because there was limited information on the 2 schemes online, we emailed CPF Board to clarify the difference between them.
The difference was not very obviously shown on the CPF website.
As such, we have dedicated this post for it.
Topic
|
Retirement Sum Top Up Scheme
|
Voluntary Contribution Scheme
|
|---|---|---|
$ Goes To
|
Special Account (age less than 55)
Retirement Account (age 55 and above)
|
Ordinary, Special & Medisave Account*
|
Uses
|
Retirement only.
Funds cannot be used
for investments etc
|
Funds can be used for other CPF schemes
|
Tax
|
Contributions are tax-deductible
|
#Non-tax deductible except if all
contributions go into Medisave Account
|
Interest
|
SA 4%
|
OA 2.5%, SA & MA 4%
|
Contribution
|
Via Cash or CPF transfer**
|
Via Cash
|
Contribution Limit
|
Until you reach your minimum sum or
your NOKs reach theirs'
|
Annual CPF contribution Limit or
Medisave Contribution Ceiling
|
Recommended Read: Can I Use CPF to Buy a House After 55 Years Old?
*Money goes into OA, SA & MA based on a fixed percentage that is determined by your age.
There is a Voluntary Contribution Calculator on the CPF website.
However, we have done the work for you, and the contribution rates are posted HERE
#There are 2 voluntary schemes, one is fixed contributions to 3 CPF Accounts (OA, SA & MA), which are non-tax deductible. Another is where all contributions go into your MA, which is tax-deductible.
However, if you are self-employed, there are other tax-related exemptions for you that are beyond the scope of this post.
**You may transfer your excess CPF funds to your next-of-kin if you have met the current prevailing Retirement Sum (RS) if you are aged below 55.
If you are age above 55, you may transfer your excess CPF funds above your RS to your next-of-kin's CPF.
Next-of-kin are parents, spouse, siblings, grandparents, parents-in-law, & grandparents-in-law.
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There is a 3rd voluntary top-up scheme --- topping up only Medisave portion. This is tax deductible too.
ReplyDeleteYup, there is the 3rd one - specifically for Medisave only. 😁
DeleteBut only if you have less than the prevailing Basic Healthcare Sum (BHS), only then can one top up to Medisave.
After 65 years can i withdraw my cpf account for my retirement age and how many percent i can withdraw out thanks?
ReplyDeleteYou can withdraw amount in excess of your cohort's Full Retirement Sum (FRS). It is not an exact percentage, rather it is an amount.
DeleteThen your FRS will be used for CPF LIFE monthly payouts, and the money will be given to you every month until you pass away.
For more info on CPF LIFE, you can read up here: https://investmentstab.blogspot.com/2020/01/cpf-life-in-year-2020.html 😁
Do I interest for my cpf life amount and what's the percentage
ReplyDeleteVoluntary Housing Refund... if used CPF-OA under CPF Housing Scheme.... No Tax Relief for this so call "top up" to CPF-OA...in Cash Only....
ReplyDeleteYup, because you are technically "paying down" the money you have withdrawn and the interest accrued.
DeleteIt is not an additional top up to your own account, hence it does not qualify for a tax relief.