1.6M Super Pension Cap Questions, page-12

  1. 828 Posts.
    lightbulb Created with Sketch. 19
    Thank you for everyone who contributed to the discussion here which I found helpful.  May I ask a related question here:  I assume the $1.6M transfer balance cap covers all the transfers within a person’s industry pension funds as well as in his/her private smsf funds?   Otherwise everyone will take advantage of the loophole.  For example, if a person has about $400K in a smsf TRAP fund as well as about $900K TRAP setup in an industry fund.   If she turns 65 in 2 years time and on her 65th birthday, all her two TRAPs will automatically be converted to account-based pensions and be subjected to the transfer balance cap.  So, she has to keep an eye on how much those funds will increase for the next 2 years.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.