SMSF re contribution strategy

Discussion in 'Superannuation, SMSF & Personal Insurance' started by denis oshannessy, 8th Jul, 2019.

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  1. denis oshannessy

    denis oshannessy Member

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    What are the rules regarding re contributions of funds? Just retired but not started a pension fund yet - could I make a withdrawal, use funds short term outside of super to cover bridging finance for a new home buy, then put the funds back into smsf up to 12 months later?
     
    denis oshannessy, 8th Jul, 2019
    #1
  2. SatayKing

    SatayKing Well-Known Member

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    While others may be prepared to provide a more definitive answer, I honestly believe this is a matter best raised with your tax, legal and financial advisers as re-contribution strategy may involve complex tax and eligibility considerations. You could easily stuff it up if you go DIY.

    Best to pay professionals to avoid that.

    Depending how much you have in super the cost could well be a relatively small amount and also have the effect of avoiding a bigger financial pain later on.
     
    SatayKing, 8th Jul, 2019
    #2
    kierank likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Will you be working to meet the work test?
     
    Scott No Mates, 8th Jul, 2019
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  4. geoffw

    geoffw Moderator Staff Member

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    As well as meeting the work test, there are limits as to how much you can put into the super. It doesn't matter if you are contributing the first time or recontributing.

    Know the rules: Contributing to super over 65

    Your accountant should be able to help you. They can't advise you on strategy (that's financial planning) but they can advise you on contribution rules and tax.
     
    geoffw, 8th Jul, 2019
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  5. JohnPropChat

    JohnPropChat Well-Known Member

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    Watch out for contribution limits but one advantage to re-contribution is to convert some of your concessional part to non-concessional part. Had potential advantages for estate planning. Get good advice of course.
     
    JohnPropChat, 8th Jul, 2019
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  6. denis oshannessy

    denis oshannessy Member

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    denis oshannessy, 8th Jul, 2019
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  7. denis oshannessy

    denis oshannessy Member

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    Thanks all for the relies. Just to confirm, talking about withdrawing and recontributing allowable within my age limits. It comes down to understanding rules that apply to time the funds are outside of smsf. I,d like to be able to withdraw a lump sum now at age 63 and recontribute in this in one year at age 64.
     
    denis oshannessy, 8th Jul, 2019
    #7
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