{"id":2530,"date":"2023-12-17T14:00:23","date_gmt":"2023-12-17T06:00:23","guid":{"rendered":"https:\/\/www.wealthfor.us\/article\/?p=2530"},"modified":"2024-12-11T18:20:29","modified_gmt":"2024-12-11T10:20:29","slug":"have-you-planned-your-tax-reliefs","status":"publish","type":"post","link":"https:\/\/www.wealthfor.us\/article\/have-you-planned-your-tax-reliefs\/","title":{"rendered":"Have You Planned Your Tax Reliefs?"},"content":{"rendered":"

Time flies! We are already nearing the end of the year, whew! This is the final reminder to plan for next year’s tax reliefs. Some reliefs require you to <\/span>take action before the end of the year<\/b>. In this article, we will review some popular tax reliefs that require your action before the end of the year. Take a look and see if you want to claim them.<\/span><\/p>\n

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CPF Voluntary Contribution<\/h2>\n

You are eligible for this tax relief if you are a Singaporean or PR.<\/span><\/p>\n

You can enjoy dollar-to-dollar tax relief if you make a CPF cash top-up to yourself up to <\/span>$8,000<\/b>. In addition to the above, you may be eligible for an additional tax relief of up to $8,000 if you make a cash top-up to your loved one’s CPF.<\/span><\/p>\n

You may do this voluntary cash top-up to your Medisave (MA) and\/or Special Account (SA). Please remember that you can only do cash top-ups if you have yet to reach the Basic Healthcare Sum and\/or the Full Retirement Sum.<\/span><\/p>\n

Top-Up MA or SA First?<\/span><\/h3>\n

This is the classic question everyone asks whenever they want to top-up their CPF for the first time. There is no right or wrong answer here. Both MA and SA enjoy the same interest rates. The difference is just in their purpose. SA can only be used during your retirement. You can’t use it before retirement. In contrast, MA can be used for approved medical-related costs anytime.<\/span><\/p>\n

We prefer topping up MA first because it allows us to use the funds before retirement. You can use MA to pay for insurance, dental procedures, surgeries, etc. Additionally, MA has a much lower cap, called Basic Healthcare Sum, of $75,500 starting in 2025. Once you hit this cap, any CPF contribution to your MA will automatically flow into your CPF SA account.<\/span><\/p>\n

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SRS Contribution<\/h2>\n

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme that complements the CPF and is designed to help with your retirement while also providing tax relief.<\/span><\/p>\n

You can enjoy an equivalent amount of tax relief if you contribute to your SRS account (up to a maximum contribution limit).<\/span><\/p>\n