Generally, if you maintain the Insurance Bond for 10 years then the original amount plus accumulated income net of tax may be withdrawn free of CGT or income tax, subject to satisfying the 125% rule (where each year’s contributions don’t exceed 125% of the previous year’s contributions).
Suppose I have contributed $10,000 per year for the first 10 years of holding an investment bond (with no increase at all during this time), but want to contribute more from the 11th year onwards, do I still need to satisfy the 125% rule? If so, what is the relevance of the 10 year clause in the statement above?
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2,148 views1 replies
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2,148 views
1 replies