What's the maximum tax relief for top-up to MA or/and SA? - Seedly
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Furball

Asked on 20 Nov 2019

What's the maximum tax relief for top-up to MA or/and SA?

I'm looking for maximum tax relief by cash top-up to MA or/and SA but I'm still a little confused.

1) Is the maximum top up cap either to MA or SA $7k for every year of assessment?

2) Possible to top up $3.5k to MA and $3.5k to SA and still able to get maximum tax relief?

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Furball,

Max tax relief for RSTU to SA/RA is $14K, comprising of

  1. $7K directed at your own account

  2. $7K directed at the account of

  • Parents or Parents-in-law;

  • Grandparents or Grandparents-in-law;

  • Spouse; and/or

  • Siblings

Provided that

  • SA is not at FRS and beyond (You won't be allowed to top up past FRS)

  • RA is not at FRS and beyond (You will be allowed to top up, but won't get a tax relief)

  • Your spouse or siblings do not have an earned income of more than $4K a year

For MA top up (voluntary contribution), your tax relief is given to the lowest of the following:

  • Voluntary cash contribution directed specifically to Medisave Account or

  • Annual CPF contribution cap for the year, less Mandatory Contribution (MC)*

  • Prevailing Basic Healthcare Sum(BHS)^, less the balance in Medisave Account before the voluntary cash contribution.

You'll need to do your sums for the MA-VC as it is far trickier than RSTU.

These two tax relief caps are seperate.

Hope it helps.

A lengthy discussion with some comments on some examples (maths included) can be found here:

https://seedly.sg/questions/income-tax-question-what-will-you-do-in-this-situation

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ūüĎć 4

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Furball

21 Nov 2019

Cool ūüĎćWill do that. Thanks Elijah!
Elijah Lee
Elijah Lee

21 Nov 2019

Furball, just an update on the statement "These two tax relief caps are separate." The tax relief cap is a different matter from the contribution cap. The contribution cap for MA VC is impacted by your MC and the annual limit, so if your MC is $37740 already, but your MA not at BHS, and you attempt to top up via MA VC, they'll refund the money to you.
Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 20 Nov 2019

Total Tax relief of voluntary top up to Self is 7k.

So yes, you can do it in any combi to get that 7k.

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ūüĎć 1

Hi Furball, the total tax relief of voluntary top-up to self is $7,000, so both ways that you have mentioned are applicable.

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ūüĎć 0