Can we get tax relief for top ups above $7K? - Seedly
 

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Asked by Anonymous

Asked on 12 Jun 2019

Can we get tax relief for top ups above $7K?

Can CPF raise the SA limit above FRS for tax relief?

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Seh Xiong Chong
Seh Xiong Chong
Level 4. Prodigy
Answered on 18 Jun 2019

Yes, if you top up for your family members.

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Vivien Lee Feng
Vivien Lee Feng
Level 4. Prodigy
Answered on 14 Jun 2019

Extracted from iras website: The maximum CPF Cash Top-up Relief per Year of Assessment (YA) is $14,000 (maximum $7,000 for self, and maximum $7,000 for family members).

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Germaine Chong
Germaine Chong
Level 4. Prodigy
Answered on 14 Jun 2019

We can get tax relief for cash top ups (capped at S$14k)

  • S$7k relief for yourself

  • S$7k relief for parents/ parents in law, grandparents/ grandparents in law, spouse or siblings

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SW
Shaun Wq Lim
Level 5. Genius
Answered on 13 Jun 2019

There are another two ways to getting additional tax relief while saving for retirement.

You could do voluntary contributions to your Medisave account subject to the Basic Healthcare sum and CPF Annual Limit. One advantage is when you hit the BHS, the usual MA contribution will go to your SA instead. Helps to accelerate your SA retirement savings.

You could also contribute to your Supplementary Retirement Scheme account. Tax relief amount is the actual amount contributed to SRS.

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Takingstock @
Takingstock @
Level 6. Master
Updated on 12 Jun 2019

The rules for tax relief are specified

  • up to 7k relief for contributions of own SA
  • up to max 7k relief for contributions to spouse, parents grandparents and parents in law.

So one person maximum 14k relief (per tax year), but you can actually top up more than 14k, just no additional tax relief.

And to the second, if you top up minimum sum / SA / RA, if it leads to the SA / RA above FRS amount, I believe cpf will refund you the excess. To navigate around this, I would think topping up earlier in the year helps if you wouldn't have hit the FRS in early part of year, and let regular contributions to SA from work continue to hit the balance above FRS, so you get to optimise the 7k relief.

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