Thanks Tony for your explanation to the changes to the non concessional contributions. Can you please clarify the following:
Prior to June 30th 2014 will be the final year to finish the “bring forward $450,000 contribution” which my husband commenced during the 2012 financial. He will contribute the balance allowable to the total of $450,000 prior to June 30th 2014. Does this mean that he can commence another “bring forward of $540,000” commencing July 1 2014 for a further 3 years as he does not turn 65 until January 2017?
In addition I have not used the “bring forward rule” yet but plan to do so. Instead of starting it this side of June 30th 2014. I assume I am best to wait until July 1st, 2014 so I can contribute the $540,000 and not be restricted to $450,000? I turn 65 in February 2018 which means I can contribute a total of $540,000 over the 3 year period commencing July 1 2014, but I think I could also commence the start of the $450,000 now and then still have a remaining one year before turning 65 in which I could then contribute another $180,000 if I choose to which compares a total of $540,000 to $630,000?
If you are only one year out from turning 65 and you want to contribute, can you only contribute $180,000 of the $540,000?
This sounds a rather in depth scenario but I hope you understand?
A: Thanks for your question.
Q1. Yes your understanding is correct. Three year period ends 30 June 2014. New one commences 1 July 2014 for husband turning 65 in Jan ‘17
Q2. Yes start your own three year bring forward after June 2014. If you contribute more than $180,00 in 2014/15, then first 3-year period will be 2014, 15 and 16 financial years. You can then have another three year period for 2017, 18 and 19 financial years with ideally the $540,000 contributed before the end of the financial year in which you turn 65.
Q3. Yes, see my answer to Q2. I hope this provides enough information that is also clear.
Regards, Tony Negline.