Mr Ong is under 55 years old. He wishes to make cash top-up in 2023 as follows:Hyderabad Wealth Management

S/NCash top-up amount Mr Ong wishes to makeTop-up to:Information on CPF account to be topped-upa (i)$8,000his own CPF Special AccountHis total Special Account savings, including net Special Account savings withdrawn under CPF Investment Scheme (CPFIS) is $196,800.a (ii)$8,000his own CPF MediSave AccountHis MediSave Account balance before the top-up is $61,500.b (i)$8,000his mother’s CPF Retirement AccountHis mother's Retirement Account savings is $200,000.

(a) Cash top-up to own CPF account

(i) For cash top-ups to Mr Ong’s own Special Account:

Full Retirement Sum (FRS) in 2023$198,800Mr Ong's total Special Account (SA) savings and Net SA savings withdrawn under CPFIS for investments that have not been completely disposed of $196,800Amount of cash top-up allowed to be made in 2023

(As Mr Ong is under 55 years old, the maximum top-up amount he can receive in his SA is an amount determined by "Current FRS – SA savings – Net SA savings withdrawn

under CPFIS for investments that have not been completely disposed of")$2,000 ($198,800 - $196,800) CPF Cash Top-up Relief for Year of Assessment 2024$2,000

While Mr Ong would like to make a cash top-up of $8,000 to his own CPF Special Account, the amount of top-up allowed to be made is only $2,000. $2,000 will be eligible for tax relief in view that in respect of CPF Special Account, the limit on the amountGuoabong Wealth Management

of cash top-up that qualifies for tax relief is the same as the amount of top-up allowed to be made.

(ii) For cash top-ups to Mr Ong's own MediSave Account:

Basic Healthcare Sum (BHS) in 2023$68,500Mr Ong's MediSave Account (MA) savings$61,500Amount of cash top-up allowed to be made in 2023

(The maximum top-up amount he can receive in his MA is an amount determined by "Applicable BHS – MA balance before the top-up")$7,000 ($68,500 - $61,500) CPF Cash Top-up Relief for Year of Assessment 2024$7,000

For Year of Assessment 2024, Mr Ong may claim a total CPF Cash Top-up Relief of $8,000 (While there is $2,000 from the cash top-up to his own Special Account + $7,000 from the cash top-up to his own MediSave Account, the total is capped at the $8,000 deduction limit in

respect of Mr Ong’s cash top-up to his own CPF accounts).

(b) Cash top-up to family member's CPF account

(i) For cash top-ups to his mother's Retirement Account:

Enhanced Retirement Sum in 2023$298,200Full Retirement Sum in 2023$198,800

Mother’s Retirement Account savings

[Refers to the cash set aside in the Retirement Account (excluding amounts such as interest earned, any government grants received) plus the amounts withdrawn.]$200,000 Amount of cash top-up allowed to be made in 2023

$8,000 (As mother’s RA savings would not reach the Enhanced Retirement Sum after the cash top-up)

CPF Cash Top-up Relief for Year of Assessment 2024 (mother’s account) $0

(No tax relief for cash top-up as the recipient’s Retirement Account savings have already reached the Full Retirement Sum.)

As Mr Ong’s mother is above 55 years old, cash top-up will be allowed up to the Enhanced Retirement Sum. While Mr Ong would like to make a cash top-up of $8,000 to his mother’s CPF Retirement Account and the amount of top-up allowed to beJaipur Investment

made is $8,000, no tax relief is given for the cash top-up as her Retirement Account savings have already reached the Full Retirement Sum.Mumbai Wealth Management