Question: We have a super fund and both my husband and myself are above 60 years of age. We have each about $400,000 in our taxable component. Can we withdraw this taxable component in full and put it back as a tax-free component since we are both above 60 years old? Am I right in thinking that the withdrawal of the $400,000 is tax free to us individually, and when we put it back to our super fund it will also be tax free?
Answer (By Tony Negline): If aged at least 60 but under 65, yes you can take money out of super tax free if you’re permanently retired and don’t intend to work again.
If you’re under 65 years of age, you can then contribute that money back into super as non-concessional contributions (NCCs) in one go – but be careful about previous NCCs you might have made in previous financial years. Once you hit age 65, making larger contributions becomes a problem.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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