07 Jun 2019
Hi, dumb qn here..
I've heard that topping up cash to parents CPF account is a good idea as the interest rates earned (4-5%?) would be quite reasonable, and you can get tax reliefs.
Just wondering if both my parents' Full Retirement Sum (FRS) $171k i think has been met, will I still be able to top up cash to their CPF account to get tax relief? It seems like there is a limit to how much I can top up. They are both >55, <65. but i heard abt FRS vs ERS too? any advice is gr8ly appreciated!
If your parents have met the FRS, then there's no tax relief when you top-up their CPF RA. In that case, the only purpose would be for earning the interest rates from cpf. However, do note that the monies topped up will only be disbursed to your parents gradually via monthly payouts from 65 onwards; it won't be available as a lump sum withdrawal.
Question is not dumb, but a lot of the info can be obtained from the horse's mouth. Including tax re...
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