July 2022 brings more changes to the super rules. Super expert Garth McNally answers the most common questions from SuperGuide Premium members about these changes.
The questions covered are as follows:
- I am a self funded retiree and about to turn 60. I would like to make a $357,500 contribution to my accumulation super ($27,500 concessional + $330k non-concessional using the bring forward rule). Can I immediately after making these contributions, transfer my accumulation super to a pension account? Or do I need to wait 3 years? (due to the bring forward).
- I am 70 years of age. My TSB is $2 million. From this I have $1.6 million in the pension phase. This leaves $400,000 in the accumulation phase. I know this is taxed at 15%. However, what if I want to obtain it? How much tax would I pay? Do I have to withdraw it as a lump sum?
- I suspect the following may cause a great deal of confusion in the years ahead so your expertise in clarifying it would greatly benefit your readers (including me!!). In the explanatory memorandum for the above-mentioned super changes I quote: “4.29 Noting that individuals aged 75 and over are generally precluded from making voluntary contributions to superannuation, the amendments provided by this Schedule are not intended to enable individuals approaching 75 years of age to bring forward non-concessional contributions from future years (i.e. during which they will be aged 75 years or over) where they will not have eligible cap space. Individuals will only be able to access the bring forward arrangements for years in which they have cap space.” So does this mean a 74-year-old would be unable to make use of the bring-forward provisions and thus be limited to the non-concessional contributions cap of $110k?
- When I roll funds out of pension phase back into accumulation phase is there any tax on the funds moving about within my own SMSF?
- Can you make an in-specie transfer of a personally owned crypto holding into an SMSF?
- I am 61 and considering full retirement and commencing a pension as from 1 January 23, ie half way through the financial year. If my total SMSF balance is less than $1.7m and I realise the capital gain after 1 January 23 but before 30 June 23, is all of the capital gain tax free as it was realised after the pension was commenced or is a proportion of that capital gain still taxed during the accumulation phase between 1 July 22 – 31 December 22 albeit the capital gain was only unrealised during that period?
- I have no existing super fund. Can I make a contribution to a super fund from the proceeds of the sale of an investment property? I am over 75 years of age.
- One member of our SMSF is turning 75 in October 22 and is currently in pension mode with a super balance well under the maximum threshold. He has not made any contributions in the past 10 years. Is there an opportunity for him to make another contribution due to the recent changes to the work test and if so what would be the maximum amount be?
- I have a SMSF fund. Currently, I’m 64 and in the accumulation phase of the super fund (not in the pension phase). My total super balance (TSB) exceeds $1.7M and I’m retired. Can I make a personal (concessional) contribution of $27,500 into my super fund? I understand that the Transfer Balance Cap (TBC) does not apply in this case as I’m in the accumulation phase of the super fund.
- I saw SuperGuide’s article about not being able to add to a pension once started. Does this mean that it’s not allowable to commute the pension add the additional funds and then restart a “new pension” with the increased amount? Obviously all on the same day.
- Can you transfer an investment property currently in a discretionary family trust into your SMSF? How would you do that? What are the pros and cons for such a move?
- How can you reduce inheritance tax if you leave your super to your children?
