Money FM 89.3 Show
Asked on 11 Sep 2019
Are there limits to take note of, etc?
Yes, firstly the $14k is divided into $7k for your own personal top-ups and another $7k for loved ones.
The thing to take note here is that the tax relief for topping up your spouse/sibling’s account will only be given to you if their annual income is less than $4000/yr. So this usually is applicable to a single income household.
Oh and topping up for your parent’s if they’re above the age of 55 also has another caveat.
You can only claim tax relief up to the difference between the current Full Retirement Sum and their current balance in the Retirement Account.
For example, this year’s FRS is 176k, and your parents have 170k, you can top up 7000 but only 6000 is given as tax relief. This also means any top-up above FRS will not be eligible for tax relief.
So if you’re only doing this solely for the tax relief, then you have to choose! :P