It is the last month of the year. This month, I finally opened my Supplementary Retirement Scheme (SRS) account with OCBC. I convinced my wife to do so as well. I have done a little homework prior to opening a Supplementary Retirement Scheme account. My main reason for opening a Supplementary Retirement Scheme account is for tax reduction.

Contributions

Contributions to the Supplementary Retirement Scheme account are eligible for tax relief and only 50% of the withdrawals from Supplementary Retirement Scheme are taxable at retirement. The below table is extracted from IRAS website and it shows the maximum Supplementary Retirement Scheme contribution we can make yearly.

Year	Absolute Income Base*	Yearly Maximum SRS Contribution
2011 to 2015	$85,000 (17 months x $5,000)	$12,750 (15% of $85,000)
2016 onwards	(17 months x $6,000) = $102,000	15% of Absolute Income Base (15% x $102,000) = $15,300

*The Absolute Income Base is calculated on ......