Question 1: My wife and I each have just over $1.4m in our SMSF. We are both 64 years old, retired and in pension mode. I have read that we both could add non-deductible contributions of $200,000 each this financial year, using the bring forward contribution rule. I wanted to know if this is true? Also, what happens to the amount that goes over the $1.6 million cap? Would we have to move this back into the accumulation phase?
Answer: Yes, if your total superannuation balance is between $1.4m and $1.5m, you are under 65, and you haven’t made any material non-concessional contributions over the previous year, you can access the bring forward rule and contribute up to $200,000 into super (from your own monies). The age limit will be increased to 67 years (under current Government plans) from FY21.
All super contributions are made to an accumulation account.