It’s the first time I did a VC to my CPF as I have already hit my FRS.
I was surprised to see that part of my VC actually went into my SA account.
I thought all of it will go into my OA.
I am still employed and I will be getting Mandatory Contribution to my OA and SA.
But after going through my last year’s CPF statement, I realised that I am very close to the $37,740 annual limit.
I know that any excess will be returned to me interest free next year.
My questions are,
What happens when my MC reaches $37,740?
How is the interest in my OA and SA affected?
This $2,378.20 will be earning 4% compounded interest in my SA for the next 12 months.
How will this interest be affected when I hit $37,740?
Do they stop paying interest? …