Have you max out your tax relief (income earned in 2018) for tax payable in 2019? Turtle "loh soh" reminder.
You have less than 2 months till end of Dec to do so to top up your CPF accounts or your love ones to maximize your tax relief for total income earned in 2018.
If you treat CPF as your risk free component of your retirement savings and still earning a decent income, this is a good way to save for your future retirement and also to reduce the tax payable to IRAS.
Do you want to find out what Turtle did in every January for the past 3 years?
Refer to my post back in Jan 2018 - https://www.investingnote.com/posts/482922
What I will do in Jan 2019?
1) I will be receiving my annual bonus in Nov/Dec 2018 and will be saving up 7k to top up my CPF SA account in Jan 2019. Also known as the Retirement Sum Topping-Up (RSTU) Scheme.
2) If I have got excess cash bonus like last year, I will be topping up my mum's RA 7k as well.
3) I will top up cash to my MA account to hit the 2019 Basic Healthcare Sum (BHS) ceiling. CPF will announce in Jan what is the ceiling, I believed it should be between 4-5% like last couple of years. So we should be looking at around $57,000 (based on 4.5% increase).
All 3 actions will have tax relief and reduce my tax payable for income earned in 2019.
More info can be found here: https://www.straitstimes.com/forum/letters...
NOTE: CPF Cash Top-ups Scheme are irreversible and irrevocable.
FYI, CPF did not pay Turtle to advertise for them. I did it because I am KPO Turtle and like to share "ho liao" with my IN bro and sis.
Have a great weekend. Sit back, Relax and Eat Popcorns.