Tax concessions on rollover to SMSF

Hi Tony,

Can you answer this one for me? My wife has withdrawn her Super from Colonial, which was an Allocated Pension, as a lump sum and contributed the whole amount into our SMSF, of which she is a Trustee, as a non-concessional contribution, taking into account the three year period. My question is about the tax free (92.48%) and taxable (7.52%) component. Can this be contributed as 100% tax free? I hope I have explained this enough.

Regards,

Neville

A: The components when the super benefit was withdrawn are now irrelevant. What will be relevant will be the tax concessions, if any, claimed on the new contribution. As the contribution will be non-concessional this will mean that the whole amount is Tax-free. If your wife commences a pension immediately then there will be little growth to that amount. So most of the pension will be Tax-free. Just make sure your wife can contribute and consider the relevant contribution caps.


Cheers,



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