Forman Financial Services

Aged Care Strategy – Superannuation – Contribute or rollover income streams to accumulation phase if under age pension age

This can benefit people who:

  • are residing in aged care who are under age pension age

Potential Benefits:

  • May increase entitlement to pensions under income or assets test, as super in accumulation phase exempt under age pension age
  • May reduce aged care fees, as super in accumulation phase exempt under age pension age

Things to be aware of:

  • Non-concessional or concessional contributions caps
  • Tax on earnings in accumulation phase (max 15%) compared to tax in pension phase or outside superannuation
  • Contribution preserved until condition of release met
  • Costs and taxes if redeeming investments to contribute to super
  • Commuting superannuation income streams and rolling back to accumulation may result in losing grandfathering

Aged Care & Home Care can seem complex.  We have a special offer for general advice for $225.00.
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