When can I get $2m into tax-free super income stream?
A reader wanting to move into retirement phase in his SMSF wonders whether inflation is high enough for the cap to move up another $100,000 from $1.9 million.
Q: I’m approaching the stage of starting a pension from my self-managed super fund. I note that the transfer balance cap that allows tax-free pension income increased to $1.9 million on July 1 and that inflation is responsible for this increase.
With all the current news about high inflation, what do you think the chances are for inflation to increase enough to lift this to $2 million or more from July next year? Mark
A: On July 1 this year, as you have observed, the general transfer balance cap (TBC) increased to $1.9 million. The TBC is the maximum amount of super that someone starting a superannuation pension for the first time can transfer from their accumulated savings into tax-free income phase.
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