I sensed this opportunity for a Medisave top-up to qualify for some tax relief.
As my CPF Special Account has already surpassed the full retirement sum of $213,000 for 2025, I could not make voluntary top-up under Retirement Scheme Top-Up to qualify for tax relief.
A maximum tax relief of $8,000 applies when we top up our own CPF SA or RA, and an additional tax relief of $8,000 if we top up loved ones' CPF SA or RA. The combined $16k tax relief on CPF cash top-ups is shared with any contribution to MA of our own or loved ones.
I have already top up my mum CPF RA with $8k and my own Supplementary Retirement Scheme account by $15,300 early this year to qualify for tax relief.
The other options for tax savings would be to enroll in courses, make donations to qualified charity organisations or to make top up to Medisave account.
Self top-up to Medisave account is the last feasible route for me to enjoy additional tax relief for 2025
Effectively, I would be making cash top-up of $729 which is the total premium costs back to my CPF Medisave account.
There it goes. Using PayNow for instant top-up and reflection in the CPF transaction.
Restoring my MA back to BHS, allowing $729 to yield 4% for Dec 2025 in Medisave and saving 15% of income taxes worth around $100+.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It's crucial to conduct your own research or consult with a qualified financial advisor before making any investment decisions.
Thanks for reading!
With love & peace,
Qiongster
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