1 January is always an exciting day. Not because it is the start of the new year, but because it is the date where we can all check how much CPF interest we have earned in the preceding year.
I received $11,134.61 in interest from CPF for the year of 2023. In 2022, I received $9,281.95 in interest. The MA interest was adjusted into OA as my SA had already reached Full Retirement Sum (FRS).
With MA Basic Healthcare Sum (BHS) being increased to $71,500 from $68,500 in 2024, I did a $3,000 cash top up to my MA on 1 January. Hence, my MA is now back at BHS level (i.e. $71,5000).
Why did I do a top up on the first day of 2024?
1) I wanted to get tax relief of $3,000 for Year of Assessment 2025
2) My monthly CPF contributions from employer is typically credited on the first or second day of the month. I did not want that contribution to decrease my tax...
Hi,
Referring to your MA top up of 3000 to achieve BHS, am wondering why top up 3000 to your MA when interest rate in OA is 2.5%. In the current interest rate market Isn’t it better to leave it and let the MA interest make up for the increase in BHS. Your 3000 cash can earn you better interest in Tbills or fix deposits.
I use to do the same every year and for this year have stop doing so until market interest rates fall below 2.5%
Just my thought . Pls comment if this is the case.
Regards
As he already max up his SA, topping up MA will allow him to get tax relief.. let say if he is in the 20% tax bracket.. topping up 3k to MA will save him 600 tax.