Can an SMSF member who has already maxed out their $1.6 million...

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06/08/18

13:23

Post #: 34747641
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Originally posted by stephenp ↑

Given the whole purpose of the change was to make money. From the ATO site below, it will be indexed periodically!!!

The transfer balance cap applies from 1 July 2017. It is a limit on the total amount of superannuation that can be transferred into the retirement phase.
The transfer balance cap will start at $1.6 million. It will be indexed periodically in $100,000 increments in line with CPI. The amount of indexation you will be entitled to will be calculated proportionally based on the amount of your available cap space. If, at any time, you meet or exceed your cap, you will not be entitled to indexation.
You can continue to make multiple transfers into the retirement phase as long as you remain below the cap. All your account balances are included when working out this amount. It does not matter how many accounts you hold these balances in.

Given the min with drawl is 4% I am not certain what will happen when earnings result in exceeding the cap. I am assuming then that more will need to be taken from the pension account and moved into an accumulation account to keep the balance at the end of the FY below the cap.

It seems a bit tricky to juggle given that indexation will be periodic!

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Can an SMSF member who has already maxed out their $1.6 million Transfer Balance Cap (TBCap) can have additional earnings added to the fund account supporting their pension?
The answer is yes.
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Can an SMSF member who has already maxed out their $1.6 million...

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