Lawrence Tax Relief for topping up your spouse RA
Come across a clause in CPF website stating if you top up your spouse RA and your spouse earned more than $4000 in previous year, you will not be eligible for income tax relief, I don't understand the rationale behind this policy, can someone please to enlighten?
I agree the threshold seems ridiculously low, With annual income of $4000, the spouse would only have contributed (together with employer) less than $1500 to CPF.
I see, but there are also many who are earning very low income hence need their spouses to help top up their RA. To encourage topping up, should remove such restrictions.
I think this policy is to encourage CPF member to help their spouse who are not working to contribute to their retirement needs. If the spouse is working and have regular contribution to their retirement account, they already have regular flow of money to their retirement account.