Q: My wife turns 65 in early June 2012 . Can I make a spouse contribution of up to $450,000 before her birthday? Her last non-concessional contribution of $157,711 was made in 2008/2009.
I am not permitted to give advice, but I can provide you with a general answer. Generally speaking an individual who makes a contribution greater than $150,000 triggers the bring forward rules for the following two years. For example if an individual made a non-concessional contribution greater than $150,000 in 2008/2009, then the total contributions allowed over the 3 years (2008/2009, 2009/2010 and 2010/2011) would have been $450,000. The individual can then take advantage of a new bring forward in the 2011/2012 year, which is $450,000.
The general rule is that if an individual is under the age of 65 on 1 July of a financial year, then that individual can contribute more than $150,000 in non-concessional contributions in a single financial year, triggering the bring-forward rules. If such an individual makes the contribution after turning 65 in that financial year, then he or she must satisfy a work test.
You will need to verify your personal circumstances with your accountant, or the ATO.
The following articles should also provide more information on your question:
- Super contributions: Turning 65 part-way through the year
- Beef up your super using a bring forward
- Bring forward rule: 10 facts you should know
- Turning 65: Maxing out the after-tax contributions cap
