Everyone talks about S$37,740 (Annual Limit).
I finally took the action to max out the voluntary contribution (VC) to MediSave account (MA), with the primary reason as tax relief. It is good to top up by using PayNow because it is done immediately!
I should have done it on January 2, 2021 to enjoy even greater amount of tax relief. I will remember doing that every year in January.
PMI : Private Medical Insurance
CSL : Careshield Life
(1) have not reached the S$80,000 tax relief
(2) have reached FRS of S$186,000 (for year 2021) in CPF SA
(3) have top up S$15,300 in SRS
(3) have not reached the CPF AL of S$37,740
Why should you do MA top up in January ?
- BHS in year 2019 was S$57,200 & year 2020 was S$60,000 .
To maximize tax relief:
(1) I should top up MA on Jan 2 , 2020 for S$2,800.
(2) On March 3 , 2020 , I should top up MA for S$610 (after MSL & PMI deduction).
(3) On Dec 16, 2020 , I should top up MA for S$295 (after CSL deduction).
Total additional tax relief in year 2020 could be : S$2,800 + S$610 + S$295 = S$3,705.
- BHS 2020 is S$63,000.
To maximize tax relief :
(1) I should top up on Jan 2, 2021 for S$3,000.
(2) Top up S$1,125 on March 16, 2021 (after MSL & PMI deduction).
(3) Top up S$295 on Dec 16, 2021 (after CSL deduction).
Total additional tax relief for year 2021 could be : S$3,000 + S$1,125+ S$295 = S$4,420.
(2) After your H&S insurance deduction (for me the deduction is in March annually).
(3) After your CareShield life deduction in December.
(1) Log in to your CPF account
(2) Go to my CPF online services
(3) Click on My Requests
(4) Choose Building Up My/ My Recipient's CPF savings
(5) Click on Using Cash > Contribute to my CPF Accounts via PayNow QR or eNETS
(6) Continue the page until you see and click on Check Allowable Contribution.