I have passed the age of 55, and according to CPF rules, I cannot top up my Special Account, besides the monthly contribution from my employer. Yet because the government has raised the limit of minimum sum, CPF Board allows me to top up my retirement account, either by cash or transfer from money in OA. Cash top up enjoys tax rebate (limited to $7,000 per year).
Since I am still gainfully employed and pay quite a bit of income tax, I made a cash top up today to my retirement account. Since the money in RA enjoys the same interest rate as SA, this will go towards enhancing my retirement savings, on top of the savings from income tax.
What about you? Are you taking advantage on the high interest rate from CPF SA or RA?
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4 comments:
CPF already stopped me from topping up 3 years ago as i already hit the SA ceiling haha :(
Jimmy,
Good for you. It means you just have to sit back, relax and watch the compound interest does its magic.
Cheers!
same here.. my SA already hit minimum sum 3 yrs back. My wife doesn't work, so every month, i transfer my OA contribution to her SA to gain the extra interest ;)
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