CPF Medisave Limit (Basic Healthcare Sum) – Where does the excess contribution go to?

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Some of you may have noticed that once your CPF medisave account hits a certain limit, the excess contribution will overflow to your other CPF accounts. Here are the rules.

First, find out the prevailing Basic Healthcare Sum (BHS) limit. The current limit in the year 2020 is $60,000. It will be adjusted upward every year, so check this link for the latest limit.

If your Medisave Account (MA) has reached the BHS limit, the excess contribution that you and your employer make will be transferred to either your Special Account (SA), or Ordinary Account (OA) depending on this next rule:

  • If your SA balance is below the Full Retirement Sum (FRS), the excess will be transferred to your SA.
  • Otherwise, the excess will be transferred to your OA.

The current FRS for the year 2020 is $181,000. Again, like the BHS, this figure will go up every year. See table below.

Full Retirement Sum

Example

John has $207k in his SA and $60k in his MA. He was born in 1980 and earns $5k a month. By using the CPF contribution calculator, his employer and his own combined CPF contribution to his MA account is supposed to be $449.92. But because of the rules mentioned above, the $449.92 will be credited to his OA account instead.

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