ATO Community

Re: Re a 70 year old, working full time and non-concessional contributions

Newbie

Views 225

Replies 4

Is a 70 year old who is working full time able to contribute up to $200,000 through a non-concessional contribution into a super fund? Has such a contribution to be justified - for example, as an inheritance or sale of property?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Super Specialist

Replies 3

Hi @CharlesHenry,

 

Individuals aged 67 – 74, must meet the work test or the work test exemption to be able to make voluntary contributions into super.

 

Please keep in mind, the non-concessional contribution cap for the current 2020-21 financial year is $100,000. At age 70, the person in question would not be able to utilise the non-concessional bring forward rule (only available up to age 67).

 

Additionally, if their super balance is more than $1.6 million, any non-concessional contributions will be treated as excess non-concessional contributions and additional tax may apply.

 

Although they would not be eligible to utilise the non-concessional bring forward rule or might have met the total superannuation balance amount, they may qualify to make a Downsizer contribution.

 

You might find QSuper’s Super contribution caps and Inheritance and superannuation pages helpful.

 

Thanks,

Mark

4 REPLIES 4

Most helpful response

Devotee Super Specialist

Replies 3

Hi @CharlesHenry,

 

Individuals aged 67 – 74, must meet the work test or the work test exemption to be able to make voluntary contributions into super.

 

Please keep in mind, the non-concessional contribution cap for the current 2020-21 financial year is $100,000. At age 70, the person in question would not be able to utilise the non-concessional bring forward rule (only available up to age 67).

 

Additionally, if their super balance is more than $1.6 million, any non-concessional contributions will be treated as excess non-concessional contributions and additional tax may apply.

 

Although they would not be eligible to utilise the non-concessional bring forward rule or might have met the total superannuation balance amount, they may qualify to make a Downsizer contribution.

 

You might find QSuper’s Super contribution caps and Inheritance and superannuation pages helpful.

 

Thanks,

Mark

Newbie

Replies 2

Thanks Mark, appreciate your help. Can I clarify/confirm that the 70 year old can make a non-concessional contribution up to $100,000 for the financial year 20/21? But they can't make use of the bring forward provisions, which only apply to those up to the age of 67.

Devotee Super Specialist

Replies 1

Hi @CharlesHenry,

 

Yes, that is correct.

 

They would only be able to contribute more than $100,000 without any additional tax, if they qualify to make a Downsizer contribution.

 

Hope this helps.

Newbie

Replies 0

Thanks Mark. You have clarified everything I needed to know.