SMSF

I have a self-managed super fund. About 80 per cent of the fund is allocated to me with the remainder to my wife. I am 63 and two years older than my wife.

I would like to know if it is possible to change the allocation of the fund to favour my wife with the view to maximising my pension, which I will qualify for in 2016 some three years earlier than my wife.

ANSWER:

You are both under 65, which means you are eligible to contribute to super.

The simpler strategy may be for you to make a tax- free withdrawal, and give the money to your wife. She could then make a non-concessional contribution.

Take advice because there are heavy penalties for exceeding the caps.