I just topped up $5k into my mum's CPF Retirement Account (RA) today.
The transaction and RA account balance are updated instantly in my mum CPF statement.
In my CPF Retirement dashboard, my remaining tax relief is also reflected instantly.
Let me share 5 great reasons why CPF Retirement Account top up can be a smart financial move.
- Tax Relief
For personal financial objective, we could enjoy tax relief of up to $8k per calendar year for topping up our parent's CPF Retirement Account under the Retirement Sum Top Up (RSTU) scheme.
Assuming a tax bracket at 11%, a relief of $8k will save $880 of individual income taxes in cash, which is a rather decent incentive to ourselves.
The tax relief is also applicable to family members such as parents-in-law, grandparents, grandparents-in-law, siblings and spouse.
- Compounding growth at 4%
CPF Retirement Account yields at least 4% and up to 6% for senior folks risk-free and guaranteed by the Singapore Government....
