Top up These 3 Accounts by Year End for Income Tax Relief

It is coming to the end of 2022. Many clients and friends asked me what can be done by 31 December for 2022 income tax relief. Here I summarized the information for topping up 3 accounts to achieve tax relief.

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Method 1: Topping up SRS Account

Procedure: Direct bank transfer to your SRS Account. If you do not have an SRS Account yet, you can easily open one in DBS/POSB, OCBC or UOB. In most cases you can open SRS Account via online banking of these banks.

Tax Relief Limit: If you are Singapore Citizen or Singapore PR, the limit is S$15,300. If you are other tax residents in Singapore, the limit is S$35,700.

Account Withdrawal Timeline: Based on current rules, the standard withdrawal age from SRS Account is age 62.

Investment Vehicle: The money in SRS account can invest to fixed deposits, bonds, endowment plans, unit trusts, ETFs, listed stocks and REITs. You may refer to my previous article here for more details.

Method 2: Topping up CPF-SA

Procedure: Use SingPass to log in to CPF official website and top up directly.

Tax Relief Limit: The combined limit for Method 2 and 3 is S$8,000.

Account Withdrawal Timeline: At your age 55, if the combined balance in your CPF-OA and SA is more than the designated Retirement Sum, you may withdraw the excess amount. The balance not exceeding the designated Retirement Sum will go into CPF-RA, and then be paid out to you on monthly basis under CPF LIFE from your age 65 onwards.

Investment Vehicle: It is handled by the government. Currently it offers a stable 4% annual interest.

Method 3: Topping up CPF Medisave

Procedure: Use SingPass to log in to CPF official website and top up directly.

Tax Relief Limit: The combined limit for Method 2 and 3 is S$8,000.

Account Withdrawal Timeline: Pay premiums for MediShield Life, Integrated Shield Plan, CareShield Life and its supplementary plan. Pay part of your outpatient bills or hospitalisation bills.

Investment Vehicle: It is handled by the government. Currently it offers a stable 4% annual interest.

Welcome contacting me if you have further inquiries.