I’m retired. Can I make super contributions?

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?

Trish’s response: 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 can make non-concessional contributions up to the age of 74. You don’t have to be working to make a non-concessional contribution, unless you’re aged 65 or over.

If you’re aged 65 or over (but under 75), you can make a non-concessional contribution if you satisfy a work test in the financial year that you contribute. In short, the work test is working 40 hours in any 30-day period in the financial year in which you intend to make the contribution.

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, is irrelevant.

If you’re aged 75 or over, you can no longer make super contributions.

Note: The bring-forward rules that permit an individual to make up to $450,000 (rather than $150,000) (for the 2010/2011 year) in non-concessional contributions in one year, only apply to individuals under the age of 65.

I explain the contribution rules in more detail in the ‘Boost your super’ section of our website. In particular you may find the following articles useful:

• Your 2010/2011 guide to non-concessional (after-tax) contributions
• For over-65s: Ten super tips when making super contributions

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