The Basic Healthcare Sum (BHS) which was known as the Medisave Contribution Ceiling (MCC) in the past has been raised from $49,800 to $52,000 in 2017. This means that we can voluntarily contribute $2,200 now. Of course, for those who are gainfully employed, this contribution will enjoy income tax relief.
For people like me whose CPF-SA has already hit or exceeded the prevailing Minimum Sum or Full Retirement Sum, this is about the only avenue we have to pump more money into our CPF to earn a 4% interest.
Of course, for those of us whose mandatory contributions (from earned income) are lower than the CPF Annual Limit ($37,740), we can also do regular voluntary contributions for the difference, maxing out the CPF Annual Limit. The CPFB will apportion the contribution to our OA, SA and MA. How much goes into each account will depend on our age group…Read the full article →