Q: If I have retired from work and later on inherit a reasonable sum of cash, can I make a non-concessional contribution into my superannuation fund? OR is that only permitted while I am working, regardless of my age?
A: For the benefit of other readers, I will first explain the meaning of a non-concessional contribution. A non-concessional contribution is a superannuation contribution made from after-tax dollars. Such contributions used to be known as ‘undeducted’ contributions, and they are often described as after-tax contributions. You cannot claim a tax deduction for such a contribution.
You don’t have to be working to make
If you’re aged 65 or over (but under 75), you can make a non-concessional contribution if you satisfy a
Anyone under the age of 65 can make a non-concessional contribution to a superannuation fund whether they’re employed, self-employed or not employed. Note that the original source of the cash, such as an inheritance or tatts lotto win or employment income, is irrelevant.
If you’re aged 75 or over, you can no longer make super contributions. You can make super contributions up to the age of 74 (except when you make a contribution after turning 75, and you ensure that the contribution is made before the 28th day of the month following the month in which you turn 75).
Note: The bring-forward rules that permit an individual to make up to $450,000 (rather than $150,000) (for the 2012/2013 year) in
I explain the contribution rules in more detail in the ‘Boost your super’ section of our website (see tab at the top of the page). In particular you may find the following articles useful:
- Your 2012/2013 guide to non-concessional (after-tax) contributions
- For over-65s: Ten super tips when making contributions
i am 70, the work test,40 hrs in any 30 day period in current fin. yr. Does volunteer work count? Do i need a document to prove this work? Thanks BrianK
Hi Brian
Thanks for your email. Unfortunately, the work test for over-65s requires paid work, rather than volunteer work. The following SuperGuide article explains the work test in more detail:
http://www.superguide.com.au/superannuation-basics/for-over-65s-ten-super-tips-when-making-contributions
Regards
Trish
Trish,
Thanks for the informative website. You may have already answered this question above.
I am 58 and retired earlier this year taking my super as a pension. I may now have to return to work to help support my teenage sons.
Assuming I start work again, Is it possible to join a super fund and salary sacrifice into super or can this only be done through non-concessional income.
Regards,
JB
Hi John
Thanks for your comment.
Salary sacrificing is available at any age up to 74, subject to an employer agreeing to enter such an arrangement. You can find more information about salary sacrificing and super contributions generally on the SuperGuide website.
Regards
Trish