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20-12-2010, 11:55 AM
My understanding is that both a cash or OA topup to SA is possible. Comparing the case of using cash, there is a topping-up limit, defined as:
Prevailing Minimum Sum - {Ordinary Account savings + Special Account savings + Amount withdrawn from Ordinary and Special Accounts under CPF Investment Scheme}
The prevailing Minimum Sum is $123k, and will be raised yearly, so lots of headroom for a top-up.
I agree with you that the lock-in of CPF is more onerous compared to SRS. It is for this reason I did not choose to top up SA, though there's a "guaranteed 4% returns".
Agreed on your subsequent point on relative rate as well. Though I think there are many other ways the government can choose to tax us. So on the surface our income tax rate may seem low by global standards.
Prevailing Minimum Sum - {Ordinary Account savings + Special Account savings + Amount withdrawn from Ordinary and Special Accounts under CPF Investment Scheme}
The prevailing Minimum Sum is $123k, and will be raised yearly, so lots of headroom for a top-up.
I agree with you that the lock-in of CPF is more onerous compared to SRS. It is for this reason I did not choose to top up SA, though there's a "guaranteed 4% returns".
Agreed on your subsequent point on relative rate as well. Though I think there are many other ways the government can choose to tax us. So on the surface our income tax rate may seem low by global standards.