facebookAge 35. OA: 50K, SA: 200K, MA: 65. Can i still do RSTU to get tax relief of $7k? Can i still do VC (there is no cap for VC right?) If i do VC, will whatever amount i top earn earn interest? - Seedly

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Anonymous

03 Feb 2020

Retirement

Age 35. OA: 50K, SA: 200K, MA: 65. Can i still do RSTU to get tax relief of $7k? Can i still do VC (there is no cap for VC right?) If i do VC, will whatever amount i top earn earn interest?

Is there a cap amount that your CPF account can have?

Discussion (5)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

30 Jan 2020

Level 15·Independent Financial Advisor at Promiseland Independent

You can't RSTU anymore as you have reached the FRS for the year in your SA. Also your MA should only have 60k not 65k.

VC is max contribution of 37740 - Mandatory Contribution. If you make 6k/mth and earn 12 months + 5 months bonus, you'd already hit the max you can contribute. Can't top up more.

You also can't do a OA to SA transfer anymore since SA is at FRS as well.

You should start looking elsewhere either in the form of your own investments, or annuities to add on to CPF Life, or even SRS account if the tax relief makes sense for you.

View 1 replies

Correct me if I am wrong, actually you can use your SA to invest in low risk investments fund. By lowering your SA below the FRS, you can continue to top-up your SA every year till you reach 55.

Shengshi Chiam, CFA

Shengshi Chiam, CFA

03 Feb 2020

Level 10·Personal Finance Lead at Endowus

Since you have already hit FRS, you should consider investing your CPF OA since you have a long inve...

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