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Anonymous

29 Dec 2020

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For a young adult in mid 20s, is it better to use spare cash of $7K to TOP up CPF SA account or do SRS contribution?

After setting aside emergency funds, I pay <$500 for income tax. Please share rationale. Thank you very much!

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1M45

29 Dec 2020

If you do not do investment yourself and you know you never will, CPF SA.

SRS you must use the $$$ in account to invest else same as bank interest rate.

SRS you need to know (in case you dont know)
-you can only withdraw at 62 else 5% penalty charge

50% of withdrawal will be taxed (meaning can only withdraw $40k per year)
you must withdraw everything within 10years

You got other relief? NS, living with parent....?

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Would like to check if I top up $7K to my CPF SA account, does it mean that I could only top up to $8.3K in SRS so that I max out $15.3K maximum contribution per SRS limit for tax deduction?

Should I use my spare cash to top up my CPF, invest or both? How should I decide the allocation? SRS, MA or SA?

CPF top up to Special Account - After hitting the SA limit, can I invest using SA such that I do not meet the limit and top up SA with cash for tax relief? After top up, I liquidate back to SA.

1) Should I buy SSBs using SRS funds instead of cash? 2) I'm a young working adult. My tax is abt $400/year. Should I be looking at contributing to SRS now, or use my cash elsewhere?

If my CPF SA account is already at FRS ($181k), can i deploy or invest some money from SA account so that the SA sum is below FRS amount and then top up $7k cash to qualify for tax exemption?

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Would like to check if I top up $7K to my CPF SA account, does it mean that I could only top up to $8.3K in SRS so that I max out $15.3K maximum contribution per SRS limit for tax deduction?

Should I use my spare cash to top up my CPF, invest or both? How should I decide the allocation? SRS, MA or SA?

CPF top up to Special Account - After hitting the SA limit, can I invest using SA such that I do not meet the limit and top up SA with cash for tax relief? After top up, I liquidate back to SA.

1) Should I buy SSBs using SRS funds instead of cash? 2) I'm a young working adult. My tax is abt $400/year. Should I be looking at contributing to SRS now, or use my cash elsewhere?

If my CPF SA account is already at FRS ($181k), can i deploy or invest some money from SA account so that the SA sum is below FRS amount and then top up $7k cash to qualify for tax exemption?

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