Understanding financial advice
Financial life goals
Tools and resources
Products and services
Investing with IOOF
Your retirement goals
Find out what your peers are asking – based on real-life questions submitted to TechConnect.
By Julie Steed – Senior Technical Services Manager
Q: My client, Sally, triggered the three year bring forward in FY2018/19 by making a $110,000 contribution. Her account balance at 30 June 2018 was $1,250,000. I just want to confirm that Sally is still eligible to contribute the full $300,000 if her total super balance at 30 June 2020 is greater than $1,400,000?
A: Sally has the ability to complete the three year (and two year) bring forward, based on the total super balance at the 30 June prior to the bring forward being triggered.
However, this needs to be balanced with the rule that a person’s non-concessional contributions cap in a year is nil if their 30 June balance is greater than or equal to the general transfer balance cap. For example, if Sally didn’t contribute in 2019/20 and was looking to make the remaining $190,000 in FY2020/21, we need to ensure that her 30 June 2020 total super balance is below $1,600,000.
If for example, Sally’s account earned 10% in FY2018/19 and FY2019/20, and her account balance at 30 June 2020 was $1,633,500, then her non-concessional contributions cap for FY2020/21 is nil. Therefore, she would not be eligible to make any non-concessional contributions in 2020/21. In addition, Sally’s bring forward period ends on 30 June 2021 so she is unable to complete the bring forward.
If Sally’s account earned less in 2018/19 and 2019/20 and her account balance at 30 June 2020 was $1,550,000, she is able to complete the full remaining bring forward amount of $190,000 before 30 June 2021.
If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.
DisclaimerThe information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.