Something new you’ll all need to pay attention to.
A very important aspect of the new transfer balance superannuation regime is the annual responsibility fund members will have from July 1 to keep the Australian Taxation Office informed about the state of their account balance and how it relates to the $1.6 million transfer balance cap.
Under special transfer balance guidelines, members with pension balances that exceed $1.6 million will have until just before the due date of their fund’s annual SMSF return to work out how much of their pension must be commuted into an accumulation account.
On the other hand: My understanding is that once my total superannuation balance exceeds $1.6 million, I shall no longer be able to make non-concessional payments into my accumulation account without a tax penalty.
Not the most helpful, but someone’s gotta understand the ‘tricks and traps of the $1.6 million superannuation balance’
For more details read some more, or talk to someone who’s over 65.
Photo credit: Lucas https://www.flickr.com/photos/luhkaz/