Minimum Sum topping up Scheme
What:
The government will reward you with tax benefit up to $14,000 a year if you use cash to top you and your family CPF account.
$7000 tax relief if you use cash to top up your own and additional $7000 if you use cash to top up your siblings/Spouse/parent/grand parent.
Conditions:
1) Your Siblings/spouse/parents must not have income exceeding $4000, or
2) Handicapped (I really don’t understand this clause!)
Who should do it:
You should take this up if you are already using cash to support your parent or grandparent. Because at their age, they can already withdraw from their account for retirement. In the end you your benefactor still gets the money and you save on your taxes.
I would not want to top my own account as I think I can make my money work harder for me then the current CPF rate.
CPF Quick Facts
Max salary ceiling: $5,000You contribute: 20% of your pay
Your boss contribute: 16%
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