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Topping up MediSave to enjoy Tax Relief and “Free” Medical Insurance Coverage
By The Boy who Procrastinates  •  June 15, 2019

By The Boy Who Procrastinates - June 15, 2019


Following the previous article on Unlocking the Potential of CPF, I have made a voluntary cash contribution to my Medisave Account (MA). 

The primary intention is to optimise the additional 1% interest earned on the first $60,000 combined CPF accounts. Personally, I find it difficult to pass on the extra interest which would make a significant difference under the compounding effect over the span of 25 years.

Voluntarily contributing to MA also allows me to claim tax relief for YA 2020 (ie. income earned in 2019). Furthermore, the increased interest generated by the growing MA balance helps to provide "free" medical insurance coverage payable by Medisave. 

As we know, nothing good is ever completely one-sided. Despite the multiple advantages as outlined above, one should be mindful of the illiquidity aspect of CPF funds as a main trade-off of the top-up.


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By The Boy who Procrastinates
I am currently a 28-year-old working adult in Singapore and financial independence is one of the ultimate goals which I hope to achieve.
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