The email address in "Contact AK: Ads and more" above will vanish from November 2018.

PRIVACY POLICY

FAKE ASSI AK71 IN HWZ.

Featured blog.

1M50 CPF millionaire in 2021!

Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

Archives

"E-book" by AK

Second "e-book".

Another free "e-book".

4th free "e-book".

Pageviews since Dec'09

Financially free and Facebook free!

Recent Comments

Hongjin commented on 1q 2025 passive income ocbc and alibaba: “How do you encourage retail investors who are not equipped…”
mitchell commented on 1q 2025 passive income ocbc and alibaba: “Clct financials getting worse and worse every single year.…”
LZ commented on 1q 2025 passive income ocbc and alibaba: “What DCF do u usually used for Alibaba, AK? i'm using…”
TH commented on srs portfolio in 2024 what did i do: “Hi AK, I have hit the max tax relief of $80k. Does it still…”
HappiSnoey commented on 1q 2025 passive income ocbc and alibaba: “Hi AK, hang in there! It will all pass… ”
fisher commented on 1q 2025 passive income ocbc and alibaba: “Take good care of yourself AK and look forward to happier…”
MPC commented on 1q 2025 passive income ocbc and alibaba: “Hi AK,Previously you mentioned that you may buy ireit at…”
Ss commented on 1q 2025 passive income ocbc and alibaba: “Dear Ak, Thank you for the post, truly appreciate it. Your…”
zhenling commented on 1q 2025 passive income ocbc and alibaba: “Made a shopping list waiting to buy various stocks! Pls…”
Shaun commented on sold alibaba for 51 gain: “Hi Ak, I understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
Shaun commented on sold alibaba for 51 gain: “Hi AKI understand you are bullish on Wilmar given how…”
SN commented on sold alibaba for 51 gain: “Hi AK, with ST Engineering up 48% YTD, will you consider…”
Yue commented on 12m53 plan for cpf in 2025: “Hi AK, can I know the reason why you don't transfer all…”
Yue commented on 12m53 plan for cpf in 2025: “Hi AK, can I know why don't you just transfer all your…”
Yv commented on 12m53 plan for cpf in 2025: “Hihi AK, with Tbills yield dipping to 2.75% recently, just…”

ASSI's Guest bloggers

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."
Source:
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.


HUAT AH!

I like. You like?





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

8 comments:

simplyme said...

Was expecting a greater increase though; medical costs have been rising faster than 4.8%. http://www.straitstimes.com/opinion/two-quick-fixes-to-rein-in-healthcare-costs

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

Unknown 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

http://singaporeanstocksinvestor.blogspot.sg/2018/01/1st-voluntary-contribution-to-cpf.html

AK71 said...

Hi WYL,

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

You might want to read this blog:

http://singaporeanstocksinvestor.blogspot.sg/2017/08/investx-congress-and-cpf.html

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.


Monthly Popular Blog Posts

All time ASSI most popular!

 
 
Bloggy Award