facebookWould 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? - Seedly

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Anonymous

05 Dec 2020

CPF

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?

Is it possible if I top up $7K to my CPF SA account?

Discussion (4)

What are your thoughts?

Elijah Lee

Elijah Lee

05 Dec 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

It seems that you are confusing the two. The maximum topup amounts are completely seperate and independent of each other. $15.3K for SRS and $7K for your own SA, and $7K for the SA of your spouse, parents, parents-in-law, grandparents, grandparents-in-law and siblings.

SRS is different from CPF SA in that it has a floor interest rate based on bank deposit account's interest rates (0.05% p.a.). CPF SA gives 4% (reviewed yearly).

Also, CPF SA monies are pretty much locked up till 55. SRS can still be withdrawn in an emergency (with a 5% penalty).

View 2 replies

Hi there!

The tax relief limits for CPF top up and SRS contribution are entirely independent of each other. You can receive a tax relief of up to $7,000 by topping up your SA and get another tax relief of $15,300 on SRS contribution(s).

Hope this clarifies things for you!

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