How to calculate my IRA contribution limits in Singapore

In Singapore, the term “IRA” typically refers to the Individual Retirement Account used in the United States. However, Singapore has its own retirement savings scheme known as the Central Provident Fund (CPF). The CPF is a mandatory social security savings plan for Singaporean citizens and permanent residents.

To calculate your CPF contribution limits in Singapore, you need to consider the following:

  1. Ordinary Account (OA) Contribution Limit: The OA is a part of your CPF savings that can be used for housing, insurance, investment, and education. The current OA contribution rate is 23% for those below 55 years old and 21% for those aged 55 and above, based on your monthly wages. The contribution is subject to a monthly wage cap of SGD 6,000 for both age groups.
  2. Special Account (SA) and MediSave Account (MA) Contribution Limits: The SA is primarily for retirement savings, while the MA is designated for healthcare expenses. The current SA contribution rate is 13% for those below 55 years old and 9% for those aged 55 and above. The MA contribution rate is 1.5% for those below 55 years old and up to 5% for those aged 55 and above, depending on your income level.
  3. Additional Wage Ceiling: There is an additional wage ceiling of SGD 102,000 per year, which means that any wages above this amount are not subject to CPF contributions.