Detailing my yearly CPF top-up here.
However, there will be changes to my CPF top-up strategy due to the changes in CPF tax relief.
1. Top-up $3k to Medisave via Paynow
As I have hit MA ceiling of $63k in 2021, I will be topping up $3k cash to my MA today to reach the MA ceiling of $66k in 2022.
I am doing this today before my Jan 2022 salary comes in, as it will reduce the amount of MA cash-top up and therefore, reduce my tax relief.
I've completed my Paynow transaction, which is instantaneous. Look at my CPF MA changes within seconds:
2. Top up $5k to SAFor the past 6 years, I've been topping up $7k to my and my mum's SA to max the tax relief. That's $84k cash lock-up in my and her CPF.
This time round, due to the tax relief capped at $8k for both MA and SA top-up, I will only be topping up $5k to my SA.
However, contrary to the past where I top-up at the start of the year, I have decided to hold off the top-up....as I'm running out of cash.
As for my mum, I will also hold off the top-up to later as well, but I may increase her top up to $8k instead.
I will update here when I have done so.