My wife and I have a SMSF and our ages are 60 and 63 respectively.
Currently my wife is receiving a Simple Account Base Pension as she has stopped working a couple of years ago to look after her sick father. She has been offered a part time job which she is considering taking up before the end of this financial year.
Given she does accept the job position could you please advise on the following:
- Will she be still able to draw the pension? Does it have to be changed to a TRAP?
- Will she be able to make concessional contributions?
- I am I able to spouse split my contributions on the 30th June 2017 for the full 85% allowable as at that date she will be employed?
A: Thanks for the questions.
- Yes. As she has already satisfied a condition of release, she can continue to draw down on the pension. She doesn’t have to convert it back into a TRAP;
- Yes – up to the concessional limit. These will go into an accumulation account – she won’t be able to access these contributions until she satisfies a new condition of release (for example, as she is over 60, she ceases an employment arrangement);
- Yes – again, provided she doesn’t go over her cap, which for 16/17, will be $35,000 in total
Regards