Quote:
Originally Posted by Unregistered
There is absolutely no reason for me to bluff here. I have not used it for property nor stocks. Ive only topped up till the tax relief limit for SA and MA and also transfer funds from OA to SA to gain on the higher interest rates.
Question to previous poster, why do u have 1 mil in your OA? Wont it be more prudent to transfer to SA for the higher yield? That’s $15K of interest forgone if you left the 1 mil in OA.
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I will be 58 soon. As far as I can remember, I hit the SA limit when I was 40 yo. With the yearly 4% interest and regular monthly contributions from salary deductions, my SA amount was always above the limit for each new year. There was no way I could top up to my SA from age 40 onwards. Same goes for my MA. Only difference was the excess in MA is transferred to your OA each year.
When I turned 55, they took a sum equivalent to the FRS from my SA to form my RA. Should you not have enough in your SA to form the FRS, they would also take from your OA.
For my case, as my SA amount was always above the yearly limit, I still have quite substantial amount left in my SA after my RA was created with the full amount - FRS. From there I further upped my FRS in my RA to the ERS. And each year, I topped up the RA to the new ERS limit. For this year 2018, the ERS is $256,500. Together with the accumulated interest, my RA now is $280k.
After your RA is created when you turned 55, there is no way to top up your SA. Your SA can still grow from salary contributions or voluntary contributions subject to the yearly limit of $37,740 and according to the allocation to the various
CPF accounts. In other words, you cannot transfer money from your OA to your SA when the limit is hit or when your RA is created.
But you can top up your RA.