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Downsizing contribution into super

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Newbie

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I am 73 and have just sold my house. Upon retirement, I have converted my super account into a pension account. Can I make my downsize contribution into the pension account or do I need to open a new super account, even though I am no longer working?

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ATO Certified Response

Devotee

Replies 1

Hi @AKW 

 

You cannot add money directly into an Account Based Pension after it's been commenced. You can only make super contribution into an accumulation account. If you qualify for the downsizer contribution rule and would like to put in the maxmum eligible contribution amount to super, you must open a super accumulation account to do so.

 

If you are eligible for downsizer contribution then you don't need to satisfy the "work test" to make the contribution. Amounts of contribution made under this rule is exempt from the work test requirement. 

 

 

Hope this helps.

To ensure you qualify for the downsizer contribution rule and will make the contribution correctly, you may wish to seek advice from a professional.

 

2 REPLIES 2

Most helpful response

ATO Certified Response

Devotee

Replies 1

Hi @AKW 

 

You cannot add money directly into an Account Based Pension after it's been commenced. You can only make super contribution into an accumulation account. If you qualify for the downsizer contribution rule and would like to put in the maxmum eligible contribution amount to super, you must open a super accumulation account to do so.

 

If you are eligible for downsizer contribution then you don't need to satisfy the "work test" to make the contribution. Amounts of contribution made under this rule is exempt from the work test requirement. 

 

 

Hope this helps.

To ensure you qualify for the downsizer contribution rule and will make the contribution correctly, you may wish to seek advice from a professional.

 

Newbie

Replies 0

Thank you Azhai, your information is most helpfull. I have read the Downsizer rules and I do believe I qualify.

Thanks again, AKW