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Re: Retired-drew down super to pay out mortgage. Now sold invest, property. Can I add it back to sup

Newbie

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Replies 4

If a person is retired and living off their super "pension".

If they drew down super to pay out mortgage on investment property. Due to covid concerns sold property as tenant returns looked risky. Can they add the proceeds of the sale back into to super.

If so, how much is allowed?

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Most helpful response

Devotee Registered Tax Practitioner

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Can they add the proceeds of the sale back into to super.  If so, how much is allowed?

 

Only if they can pass the normal tests for contributions.

 

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Most helpful response

Devotee Registered Tax Practitioner

Replies 3

Can they add the proceeds of the sale back into to super.  If so, how much is allowed?

 

Only if they can pass the normal tests for contributions.

 

ATO Community Support

Replies 2

** This post has been updated as our previous response was incorrect **

 

Hi @Maree_

 

@Bruce4Tax is correct. Whether they can contribute some or all of the sale proceeds depends on their age and circumstances. Some super funds also have their own rules about accepting contributions.

 

If they're less than 67, their super fund can generally accept all contribution types. If they're aged 67 to 74 and contribute the sale proceeds as a personal contribution, they'll need to satisfy the work test or work test exemption. There are different rules for downsizer contributions.

 

Retiring and accessing their super as an income stream generally doesn't prevent them from making new super contributions. In saying that, they can't contribute directly into their income stream account. They can talk to their super fund about how to make the contribution.

 

How much they can contribute also depends on their age and circumstances. Exceeding their concessional or non-concessional caps may mean paying more tax. 

 

Go to our website for more information about acceptance of member contributions and work test.

Newbie

Replies 1

Many thanks for your help. Appreciated.

ATO Community Support

Replies 0

Hi @Maree_

 

We took another look at your question and realised our previous answer wasn't correct. Check out our new response.