Australia's largest stock trading and investment forum Australia's #1 stock forum

this one as said,all still tax-free even though u now have over...

First 4 Last

Share
Profile

Follow
HelloU

2,153 Posts.

99

26/05/19

09:30

Post #: 38746675
Share

Originally posted by ejd99: ↑

Hi John.
This is my understanding of how it works.

The $1.6M Pension cap is a once only lifetime transfer limit - you can transfer as many times as needed from accumulation, but never exceed the cap.
The cap is derived from the amount(s) at the time of transfer (reported on the ATO TBAR form) and not the ongoing balance of the pension account.

Once in pension mode, the account can exceed the $1.6M and does NOT need to be transferred back into an accumulation account.
The 4% min (dependent on age) is based on the prev financial year balance, so if your pension account is now $1,632,000, your 4% min will be slightly more than the prev year.

This not financial advice, just my understanding based on research and discussion with my accountant.
Well done on reaching that elusive target.

Regards,

ej

Expand

this one

as said,
all still tax-free even though u now have over $1.6M. when future cap changes come (the cpi% thingoes) they will not apply to you ..... (as in, u will not have to reduce the balance when the cap gets updated)

simply, the cap can only be applied once to an account.
1 Upvote

0 Great analysis

Reply

Top Stories

PH2

Hydrogen at a crossroads: Plug Power, Pure Hydrogen and Nel ASA between opportunity and crisis – Your profit strategy

AII

Inside the depths of Panasqueira: A legacy carved in rock

ASX Market Open: Downturn as tariffs regime finally pushes US CPI higher | July 16

AII

Nasdaq-listed Almonty Industries receives substantial cash injection

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

First 4 Last

SPONSORED BY