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Anonymous

20 Dec 2020

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If my MA account has $60K as at 1 Jan 2021 and BHS is $63K, and I make a top up of $3K on 1 Jan 2021 to hit BHS. Will this $3K top up be eligible for tax relief?

Assuming I will not hit the $37740 contribution cap, and it is topped up before I will receive MA contributions in the year 2021 due to my employment? Thanks!

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Wrong Sean

20 Dec 2020

The top up period for tax relief eligibility is on calendar year basis. If you top up on 1 Jan 2021, it will be counted under YA2022 if it is tax deductible.

Whether it will be tax deductible depends on the total CPF contribution at the end of 2021.

If you are sure that your total compulsory (employer and employee) and voluntary contributions will not exceed the CPF Annual Limit at the end of 2021, then it will be eligible for tax relief. Otherwise, it will be refunded in 2022 without interest. If the total amount of CPF contributions exceed the limit, the voluntary contributions are refunded first. CPF will send you a letter with the details if there are to be refunds of voluntary contributions.

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If my SA account has reached FRS balance (181k for this year). For tax relief next year, should I top up cash $7K to SA or OA by Dec 2020 or Jan 2021?

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.

Is topping up MA eligible for tax relief if I'm looking to reduce my taxable income?

Income year assessment is from 1 Jan 2019 to 31 Dec 2019 right? Means i must faster top up $7k to my SA if i want the tax relief for financial year 2019 is it?

To earn compound interest for MA and SA since Jan 2021, when must the top up reach the account?

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