Voluntary Contribution to CPF MA in 2021.

Reminder to myself:

Do voluntary contribution (VC) to my CPF MA in early January 2021.

2021's Basic Healthcare Sum (BHS) is capped at $63,000 which is an increase of $3,000 compared to 2020's BHS of $60,000.

This means that at the start of 2021, I can do a $3,000 VC to my CPF MA as any amount above 2020's BHS carried over from 2020 will go to my SA then.

For me, this would refer to the interest earned by my CPF MA in 2020.

However, since my SA has already exceeded the prevailing Full Retirement Sum (FRS), the interest earned by my MA in 2020 will flow to my OA instead. 

Source: CPFB.

Savings in the CPF MA is paid an interest rate of 4% per annum.

So, I am going to take full advantage of this like I did in the past few years.

CPF members who have earned income will also enjoy income tax relief for VC to CPF MA.

This, unfortunately or, perhaps, fortunately, does not apply to me.

If you don't know or cannot remember how to do a VC, you can refer to the related posts hyperlinked at the end of this blog.

Till the next blog, stay safe.

Related posts:

1. Online contribution to MA.
2. VC to CPF MA in 2020.

Read also:
Voluntary Contribution to CPF MA in 2021 (Part 2.)