Merry Christmas!
As I have attained full retirement sum of $205,800 for 2024 in my CPF Special Account, 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 COF 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.
After spotting that my CPF Medisave account (MA) is no longer at the Basic Healthcare Sum (BHS) of $71,500 for 2024 after deductions of Medishield Life premiums were made days ago, I sensed this opportunity for a Medisave top-up to qualify for some tax relief.
Effectively, I would be making cash top-up of $297.29 which is the total premium costs, after subsidised by the $400 free Medisave top-up from Assurance package, back to my CPF Medisave account.
However, fret not, I am not taking my own cash to pay for insurance premiums which could be offset by CPF Medisave.
Thank you Aims Apac Reit for the Christmas gift and sponsorship!
There it goes. Using Paynow for instant top-up and reflection in the CPF transaction.
Restoring my MA back to BHS, earning potentially 4% for 2025 in Medisave worth $12 and saving 15% of income taxes worth around $44.
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. Stay focused and remain steadfast as always!
With love & peace,
Qiongster
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