This blog is more of a personal reminder to do a voluntary contribution to my CPF MA in early January 2020.
Remember that interest earned this year in our MA will go to our SA if our MA is at maximum (i.e. 2019's Basic Healthcare Sum or BHS which is $57,200).
If our SA is at maximum or is in excess of the FRS, the interest earned this year in our MA will go to our OA.
So, at the start of 2020, we can do a voluntary contribution to our MA to hit 2020's BHS which is $60,000.
How much to contribute exactly?
2020's BHS $60,000
minus
2019's BHS $57,200
= $2,800
For those who are gainfully employed and paying income tax, remember that voluntary contributions to our MA will enjoy tax relief as well.
For me, being retired, I will not get any tax relief but I will enjoy more interest income like anyone else from my MA with this move.
How much interest will $2,800 earn in a year?...
