Exceeded CPF FRS and 2 questions.

Reader:
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.



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