My yearly CPF ritual is to perform a voluntary cash top-up into both my own and parent’s CPF, to support our retirement and enjoy tax relief at the same time.
One can enjoy up to $16,000 in tax relief in each calendar year ($8,000 for yourself and an additional $8,000 for our love ones).
https://www.cpf.gov.sg/member/faq/growing-your-savings/retirement-sum-topping-up-scheme/how-much-tax-relief-can-i-enjoy
My preference is to top-up my Medisave Account first because I have already hit the Basic Health Sum in 2023 and I would like to continue seeing that at the start of 2024.
The BHS for 2024 is $3,000.
https://www.cpf.gov.sg/member/infohub/news/news-releases/cpf-interest-rates-from-1-january-2024-to-31-march-2024-and-basic-healthcare-sum-for-2024
In my CPF dashboard, I can see that my MA is at $68,500 which is the BHS for 2023. However, in my yearly account statement for 2023 my MA is already more than $68.500. Upon further scrutiny, I realised that the excess in the MA is due to interest paid. Logically, any excess over the BHS will be transferred to the Special Account but for some reason, CPF choose not to do that.
CPF has a way to confirm the amount of cash top-up allowed but the steps are always seemed elusive to me. I will attempt to document it down here as reference for future top-ups.
my cpf [top left] > My requests [bottom] > Building Up My / My Recipient’s CPF savings > Contribute to my own/recipient's MediSave Account via PayNow QR [Click on PayNow QR link] > e-Cashier page [Paying as a
Member and Payment for
Contribute to my own/recipient’s MediSave account (Tax deductible)], Next button > Start button > Enter the necessary details and click on
Check Allowable Contribution
As show in the above, I can contribute $3,000 which is the BHS increment in 2024.
A Paynow code will then be generated.
You should receive the email almost immediately once payment has been made successfully. You can also see the status under
My activities.
Check Tax Relief
Home > my cpf > Retirement
Tax Relief for 2024 should be shown at the bottom of the page. However, it is strange that there is no mention that cash top-ups to your MediSave Account is also eligible for tax relief.
This is a continuing post, and I will update it in a week or so to check on the tax relief.
3-Jan-2024 [Update]
CPF is very efficient. The top-up to my MA is reflected in just one working day. Tax Relief is also shown.
