I’m expecting my super to ‘pop’ – how can I avoid new $3m cap?
What you need to know about unrealised capital gains in your super and why they can be important, especially for those facing the government’s super tax.
Q: I am 58 and have a few investments in my self-managed super fund that may “pop” in coming years. It appears my best strategy is to get these investments into pension phase as soon as possible. If these assets appreciate well above the $3 million cap, then I should still get income from them tax-free even if the assets in future are worth a multiple of the cap. Obviously minimum pension distributions must be met. Is this correct, and can I do this for only some of my balance? Ian.
John Wasiliev is a veteran SMSF specialist and has provided answers to readers' questions on superannuation for decades. Have a super question you'd like answered? Email John at superquestions@afr.com
