Can re-use CPF monies in RA to buy flat ?

[leongszehian]

Minimum Sum is $123,000

$123,000 divided by 0.7 = $175,715

For those who have more than $175,715, in addition to keeping the Minimum Sum, also have to keep the Medisave Required Amount of $22,500, if the Medisave account has less than this amount

 

[Queen Seok Duk]

Minimum Sum is $123,000

$123,000 divided by 0.7 = $175,715

For those who have more than $175,715, in addition to keeping the Minimum Sum, also have to keep the Medisave Required Amount of $22,500, if the Medisave account has less than this amount

Yes, I'm aware of how it works.

The MRA is a non-issue unless X is more than $175,715. But the definition of Minimum Sum seems to suggest that as long as you have $123,000 or more in your X account, any shortfall in your MRA will have to be addressed first before you can withdraw money.

 

[Queen Seok Duk]

The new rules seem to prescribe a tricky situation.

If you've $175,714 in your combined OA and SA, you get to withdraw 30% which is $52,714.

If you've $175,716 in your combined OA and SA, and assuming that you are able to meet the MRA, you get to withdraw only $1.00.

So you're penalized for having just the right amount of money.

 

[leongszehian]

You are right

But I think for $175,716, the amount that can be withdrawn is $30,216 ($175,716 - $123,000 Minimum Sum - $22,500 Medisave Required Amount), if one has zero in the Medisave account

 

[Queen Seok Duk]

You are right

But I think for $175,716, the amount that can be withdrawn is $30,216 ($175,716 - $123,000 Minimum Sum - $22,500 Medisave Required Amount), if one has zero in the Medisave account

I based on calculation on the example given in page 19 of the booklet. A copy is attached.

Clearly where X > $175,715, the amount that can be withdrawn is :

X - $175,715 - MRA shortfall

 

[1sickpuppy II]

Hmmm when they say $123k do they mean just the ordinary account or all of the accounts like the special and the medisave accounts added up?

 

[Queen Seok Duk]

Hmmm when they say $123k do they mean just the ordinary account or all of the accounts like the special and the medisave accounts added up?

$123K refers to Retirement Account (RA).

RA = OA + SA + amount in excess of Minimum Sum in the Medisave

(Min Sum in Medisave is pegged at $34,500)

 

[1sickpuppy II]

$123K refers to Retirement Account (RA).

RA = OA + SA + amount in excess of Minimum Sum in the Medisave

(Min Sum in Medisave is pegged at $34,500)

OMG from what you say then die lah I only got a total sum of 105k in my cpf atm and I am going to retire in 3yrs time :( Heng ah my pegion hole fully paid at least I don't need to worry about that.

 

[theDoors]

I transferred my OA balance to the SA to make up current prevailing sum of $117,000. Left to compound at 4% interest pa it should be sufficient to meet the minimum sum when I am 55 in 2031, which is $249,000. (That is assuming the yearly increment maintains at $6000, and SA interest maintains at 4% pa)

My Medisave already hit the cap of $37,000.

But must standby a PR status from another country in case someone decides to shift the goal post again.