If you’re retired and have some money you’d like to add to super, new rules from July 1 will allow you to do so fairly easily up to 75. Here’s how this will work.
Q: My investment adviser tells me my wife, 74, who hasn’t worked since 2011, will be able to make a $300,000 contribution to our self-managed super fund in 2022-23. The value of the SMSF we jointly share is less than $2 million and I’m 75. What do you say? Martin.announced in the 2021 budget will take effect. One of these changes will allow a super fund to accept personal voluntary contributions from a member up to the age of 75 plus 28 days after the end of the month he or she turns 75.
For example, says Day, assuming she turns 75 on July 15, she would have until August 28 to make the contribution. Beyond that date, she will no longer be able to make any voluntary contributions to super other than a downsizer contribution from the sale of a family home.does she want to make? You have stated your adviser has mentioned a $300,000 contribution, which suggests a non-concessional or after-tax contribution from money on which tax has been paid.
Given you say your fund between you is worth less than $2 million, making a $300,000 contribution is a distinct possibility.What is important to remember, says Day, is that the contribution will need to be made by no later than 28 days after the end of the month she turned 75. With this pension, she will need to keep in mind her transfer balance cap , which limits the amounts she can transfer to the tax-free retirement phase.The TBC started at $1.6 million on July 1, 2017 but increased to $1.7 million on July 1, 2021, due to indexation.
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