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First CPF top up in Jan 2023 and tax relief concerns

Detailing my yearly CPF top-up and thoughts. 

This is my 8th year of top-up.

1. Top-up $2.5k to Medisave via Paynow

Did a $2,500 top up to my Medisave, bringing it to 2023 MA ceiling of $68,500.

Done the same for my husband as well.

2. On hold - To top up $5.5k to SA or no?

Contrary to the past where I top-up at the start of the year, I have decided to hold off the top-up.

A) Running out of cash

Firstly, I'm running out of cash. I'm berating myself for degrading to the past where I look forward to my monthly income for cashflow. So I can build up my $100k capital in savings account again, given the current high interest environment. 

B) Hitting FRS soon = no tax relief

Secondly, I'm concerned about reaching FRS too soon. 

The FRS this year is $198,800. I'm now sitting on ~$157k SA which means $41,800 away from reaching this ceiling. 

I know some people encouraged maxing this out ASAP. But, as I've crossed 6 digits annual income, maxing FRS soon meant lower tax relief in subsequent years. 

In fact, with the $5.5k top up this year, I'm expected to hit FRS in 2024. What should I do?

C) No more tax relief from mom's top-up

Thanks to my yearly top-up to my mum for the past 8 years, my mom has reached the FRS ceiling too. While it's good that we secured good monthly payout for her retirement, I am missing another avenue of tax relief.

What should I do? 🤔

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