Posted By
Topping Up $7,000 into my CPF Special Account (SA) for tax deductions

Last month, I decided to top up my CPF Special Account since that account gives me 4% yield risk free. My calculations showed that I can reduce my tax bill by $7k x 15% = $1050, without even taking into account future 4% yield benefits i’m to receive. It’s definitely worth the top up from an ROI point of view, since it’s tough to guarantee this kind of return in today’s market. There is a maximum cap for cash top-up relief per Year of Assessment (YA) which is $14,000 (Self $7,000 and family members $7,000), but at least max it out for yourself if you have the spare cash. This way you can quickly hit the CPF SA ceiling sooner, maximizing the 4% risk free yield early on. Will do it again for FY2019.

2 comments found

    comments user


    I did the same few years and no longer able to top up once I achieved the Full retirement sum. as It compounds at 4% you will achieve FRS fast too.


      comments user


      Yes it’s an excellent tool!


Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.