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Anonymous

Edited 03 Oct 2023

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For tax rebate sake: 1. Is it wise to RSTU 8k each year for my spouse CPF which near 0 balance in SA from now at the age of 40 till 55? 2. Priority should be SRS first or spouse CPF?

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Tan Choong Hwee

03 Oct 2023

Investor/Trader at Home

Assume your spouse is not working, i.e. annual salary less than $4k, you get $8k tax relief each year by RSTU $8k to your spouse SA each year. The actual tax dollar savings depend on your tax bracket, the higher your tax bracket, the higher your tax savings. And you get to build up your spouse SA and earn at least 4% interest.
You can get up to $15.3k tax relief by contributing to SRS and up to $8k tax relief for RSTU your spouse SA. However, SRS earns only 0.05% interest unless you invest SRS money to earn higher return, and spouse SA earns at least 4% interest relatively risk free. It is really up to you, and you can do both if you are able to.

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Would it be better for me to 1) Contribute to CPF SA to generate a guarantee 4% return and at the same time get tax relief OR 2) Purchase and annuity plan that provides monthly income from retirement?

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For CPF member above age 55 and reaching FRS. Are member allow to withdraw the balance Interest earned from OA (Year of withdrawal) before touching on the principal sum in the SA?

Under RSTU, does OA to SA CPF transfer contribute into RA at age 55? Will the transfer be counted into the withdrawal at age 55?

My mum is reaching 55 years old soon. Will she be forced to withdraw her CPF? If not, can she choose to leave it in the CPF account and let it compound over time till old age?

Would it be better for me to 1) Contribute to CPF SA to generate a guarantee 4% return and at the same time get tax relief OR 2) Purchase and annuity plan that provides monthly income from retirement?

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