May i get your advise on this matter. Am going 52, meet Full Retirement Sum (FRS) with excess. So OA, SA and MA all met limit.
I read your blog said its good to do Voluntary Contribution (VC) to CPF.
Questions:
1. If i do a VC, where or which account will the money go to since all 3 accounts had hit limit?
2. Can i withdraw the VC that i put in with interest together with my excess above the FRS at 55?
Thanks for your advise in advance.
AK:
Please remember the CPF Annual Contribution Limit (i.e. $37,740 which is 17x of CPF monthly salary ceiling of $6,000 x 37%).
How much Voluntary Contribution you can do depends on how much Mandatory Contribution (from employment) is made in a year.
Of course, if you are retired or unemployed, then, there is no mandatory contribution.
In your case, Voluntary Contributions will flow into your OA and SA. Nothing goes to your MA.
(The same thing happens with Mandatory Contributions for anyone who is still gainfully employed.)
You want to read this blog and refer to the Allocation Table provided:
http://singaporeanstocksinvestor.blogspot.sg/2017/08/cpf-sa-savings-10-years-from-now.html
At 55, the FRS will go to your newly created CPF-RA. The FRS money will be from your CPF-SA and, if that is insufficient, your CPF-OA.
Anything in excess of the FRS in the CPF-SA and/or CPF-OA, you can withdraw when you turn 55.
Related posts:
1. Know how to grow our CPF?
2. Average HDB household $1M.
Is it true that voluntary contributions cannot be withdrawn?
ReplyDeleteIs it true that voluntary contributions cannot be withdrawn?
ReplyDeleteHi Lalu,
ReplyDeleteAs long as we meet the FRS at age 55, the balance in our OA and SA can be withdrawn.
You might want to read my other blogs on the CPF as well. :)
Reader says...
ReplyDeleteAt age 55 and above, where you have more than the FRS amount - the excess will remain in OA right.
But whatever that was previously in SA, will the excess still remain in SA or they will move to OA which generates only 2.5%?
I’m more interested to know if the entire excess above FRS will only generate 2.5% interest or those previously in SA will continue in SA at 4%?
AK says...
Excess in SA remains in SA. 🙂
Reader says...
ReplyDeleteHi AK can I check with you, if I top my SA till FRS what happens when I have additional monthly cpf contribution? Will it flow to OA?
AK says...
Read this blog.