Did you know that older Aussies can put up to $300,000 into their super using the money from the sale of their main residence, regardless of caps and restrictions that otherwise apply.
The talk of rising house prices has led to people feeling it’s a sellers’ market and maybe it’s time to give up the larger home for a cheaper, more manageable dwelling.
If you decide to downsize, have you thought about what to do with the sale proceeds?
If you’re aged 65 or over, and are looking to boost your retirement savings, you can make a tax-free contribution to your super of up to $300,000 using the proceeds from the sale of your main residence.
A downsizer contribution is also unique. It's treated as neither a concessional contribution nor a non-concessional contribution, so it is not subject to either of those caps.
If eligible, you only have 90 days from the settlement, so you need to act quickly.
The criteria includes (but is not limited to):
You can put in up to $300,000 per person but you can’t put in more than the value of the sale; for instance, if you and your spouse sold a home for $500,000 you can’t put $300,000 each, but you could put $250,000 each (subject to meeting the other criteria).
It is absolutely worth seeking advice from a Certified Financial Planner as to what your financial options are regarding downsizer contributions.
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