As mentioned in my previous posts, the CPF Annual Limit is $37,740. What I didn’t realise is that this amount is the absolute limit, that is, it includes any voluntary contribution to the MA.
Since I am gainfully employed, my mandatory contributions (from both employer and employee) will already hit the AL. I used to think the MA VC is separate but I belatedly realised this was not the case when I received a refund letter from the CPF Board informing me I have “over-contributed”.
I tried all ways to earn more interest on my CPF but to no avail. All amount above the AL, including interest earned on the “excess contribution”, was clawed back. I guess this is only fair and further illustrates the CPF system was set up to benefit the masses and not the rich.
Well, everyday you learn something new. Sign …