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This guy has 800K in his CPF. (AK responds to HWZ Forum.)

A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que...

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Medisave voluntary contribution in 2018.

Friday, November 17, 2017

I updated a blog on the CPF-MA yesterday:

"For those under 65, the Basic Healthcare Sum next year will be S$54,500, up from S$52,000 previously, the authorities said."
CNA, 16 November 2017

And here are some comments on my Facebook wall:

Reader #1:
Interest $52k @ 4% = $2080.
total $54080
New amount $54500.
Still need to top up $420.

Reader #2:
4% interest will bring the total to $54,000.
Meaning we can only top up $250?

There seems to be some confusion as to how much we can contribute to our CPF-MA at the start of the new year.

So, I am doing a quick blog here on the matter.

If our CPF-MA has hit the BHS in 2017, the interest earned in 2017 will be transferred to our CPF-SA or CPF-OA (if our CPF-SA has hit FRS like in my case).

So, at the the start of 2018, our CPF-MA will have $52,000 only (i.e. the BHS in 2017).

This will allow us to do a voluntary contribution of $2,500 to our CPF-MA (to hit the 2018 BHS of $54,500) at the start of 2018 and get an "ang bao" of $100 for the year.

For anyone who is paying income tax, note that the recipient of a voluntary contribution to the CPF-MA will get income tax relief.


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Related posts:
1. Do online contribution to CPF-MA.
2. 4 ways to beef up CPF savings.


simplyme said...

Was expecting a greater increase though; medical costs have been rising faster than 4.8%.

Although I suspect too significant an increase would lead to another round howls of protest.

AK71 said...

Hi simplyme,

There are already howls of protest from some people at this increase...

So, I will count my blessings. ;p

Vikas Sharma said...

Hi AK,

Did my 2500 contribution this morning itself to lock-in the ‘angbao’ before the 2017 interest arrives and reduces the allowable topup to $420 ($2500-$2080) 😜

Wing Yew Leong said...

Will everyone get a tax rebate if we contribute or for some who earns more than the maximum deductible will not get this tax deduction and in some cases a refund by the next year without any CPF interest too?

Wing Yew Leong said...

AK, will everyone get this tax rebate, I thought if for those people who hits the max contribution through CPF, we will not be eligible for this rebate?

AK71 said...

Hi Vikas,

You faster than AK! ;p

AK71 said...


I think you got the SA and MA mixed up. :)

You might want to read this blog:

AK71 said...

Reader says...
I know for cash-top up of max $7k to CPF SA helps reduce income tax.
What about for CPF MA?
What is the maximum amount contribution and how is it calculated to reduce the income tax to be paid?

AK says...
There is such a thing as the CPF annual contribution limit.
Basically, our mandatory contribution (MC) and voluntary contribution (VC), if any, including VC to CPF-MA, cannot exceed the annual contribution limit.
Recipient gets income tax relief for VC to MA.

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