So end of the year put back the money in SSPN?

Only net savings is given tax relief.

Deposit minus withdrawal = Net savings

try this....
hope it helps to answer some of your questions...
http://www.nbc.com.my/blog/faq-rm6000-tax-...cation-savings/

Got, you just add 6k a year for a few years. After 4 years you have 24k + interest, you withdraw all, so that year you don't get rebate. Then the next year you start another 6k.

You skip one year of rebate, gain back liquidity. Since 4% isn't too bad I think just leave there better.

hi, just want to clarify:

1st year - put in rm6k.
2nd year - get interest for 1st year 6k. withdraw rm6k, put in rm6k on december, account close at end of 2nd year is rm6k.
3rd year - no interest for 2nd year, since nett for 2nd year is rm0.

correct?

Yes. So don't bother putting in 6k in 2nd year. Either put 12k or don't put in.

Dividend is prorated.

Tax relief is given on net savings.

Your 2nd year assumption on dividend is right, but you get no tax relief for that YA.

Apasal bring up Najib... savings is a good thing, whether its savings in account under your name or tax savings. Ini pun nak komplen? 

Ya,better take out and invest on others, only put back by year end. 

Diversification is key. It's better or matching FD rates. Unless you believe you should put all your eggs in the high risk high reward basket. Of course it's also stupid to put all your funds in SSPN, but this is only 6k a year.
Can, but the amount you put back must be 6k more than what the amount was on Jan 1st.

So if you do the following:-

Dec 31 2012 - Deposit 6k (qualify for tax deduction 2012)
Jan 1 2013 - withdraw 6k (takes a few weeks though)
Dec 31 2013 - Deposit 12k (qualify 6k for tax deduction 2013)
Jan 1 2014 - withdraw 12k
Dec 31 2014 - Deposit 18k ..... etc.

Then you get the tax rebate, and the only loss to you is the lost interest of a few weeks of processing for withdrawal.

Jfi....the rm 6k tax relief/rebate is till tis yr only...nrxt yr go back to rm3k

as there is always another side of a coin.....so does any gain from investment or tax deduction will not be substantial too. 

yes RM 6k till 2017...
http://www.hasilnet.org.my/income-tax/tax-relief/

btw, for my payscale...the tax saving from RM 6k is more than ....

If you're highest bracket (or close to) tax savings is by itself 20+% so definitely better than any 10% return. Unless you think you're going to leave the money in SSPN for 10 years.

At that point you need to understand about diversification. If I have guaranteed 10% per annum for 10 years of course I'll go for that. Good luck finding that instrument (even ASNB don't have that performance, and anything above that is very high risk/high reward).

Why is it your only option is:-
a) Put in SSPN and never take out (reinvest tax savings)
b) Don't do SSPN

Already we were discussing earlier a way to maintain liquidity while still increasing amount 6k per year which doesn't involve leaving your money inside SSPN. Even better if after 3 or 4 years you 'skip' one year (lose out on tax savings that year) to reset to 0 so you don't have to keep putting larger and larger amounts end of year.

What the 'point' of SSPN is, for me, is tax savings. Their stated purpose of children's education is besides the point for me, as long as they let me access my money when I want it. This is unlike, for example, KOPP with defined investment per year and no withdrawal till 18 (and also higher returns).

In the end, you need diversity. SSPN compares well with FDs which are instant availability of liquidity instruments with guaranteed returns, and with added tax break advantage. That's complementary and not replacing your other higher return/risk investments.