CPF Medisave Ceiling of $60,000

The CPF medisave ceiling has been raised to $60,000 this year. The increment is $2,800 as per last year ceiling of $57,200. One will have the option of contributing $2,800 to make up the shortfall. As per my circumstance, I have not been having contribution from the employer since May 2019 after I left the full-time employment. In the previous years, I had to make the contribution in January of the year so that the monthly contribution from the employer will not make up the shortfall. The last date of the contribution by the employer will be 14th of January. It will be different this year as there will not be contribution in my case. I continued to make the contribution of $2,800 in early January this year. This contribution will have made some tax benefits had I continued the full-time employment. This will be handy in the event if I start the full or part-time employment. This gives me the option of having the tax benefits as an alternative.

The sum of $2,800 will have annual interest of $112 from the CPF Board at the end of this year regardless of whether I have the full-time employment as per my circumstance. This is the benefit of self-contribution to the CPF accounts. I will continue to make such contribution to the best of my ability.

WTK

Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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