facebookAny purpose in topping up cash to Parents' CPF after they have met the FRS? - Seedly

Advertisement

Anonymous

07 Jun 2019

CPF

Any purpose in topping up cash to Parents' CPF after they have met the FRS?

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!

Discussion (5)

What are your thoughts?

Gerard Ong

Gerard Ong

29 Oct 2018

Level 5·Tax Manager at Ernst & Young

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.

if they have income ($4k/yr, including tax exempt income such as interests and dividends), even can top-up, you won't get relief.

if their RA ERS, you/them can't top up any more.

Question is not dumb, but a lot of the info can be obtained from the horse's mouth. Including tax re...

Read 3 other comments with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Continue with Facebook
Sign in with Apple

Sign up or login with an email here

Write your thoughts

Advertisement