We have recently updated our SMSF360 FundWeb Contribution Caps page to take into account the “Bring Forward Rule” and contributions to “other funds”.
This means that you can now:
- Automatically track payments against contribution cap limits.
- Capture contributions to other funds.
- Capture prior year details, i.e. the ‘Bring Forward’ rule is supported.
- Keep up to date and stay in control of contribution balances with alerts to inform you of potential excess contribution issues before they happen.
- Easily share information about contributions between you, SMSF360 and your financial adviser
What is the bring forward rule?
People under age 65 may at any time during a financial year bring forward two years’ worth of non-concessional contributions into the one financial year, allowing them to contribute up to $450,000 (2011-12) without exceeding the non-concessional contribution cap. Where a person contribute up to this bring forward limit in the financial year, they will be ineligible to contribute any further non-concessional contributions for the following two years without excess contributions tax (ECT) applying.
The bring forward rule is non retrospective. The contribution caps work on a “use it or lose it” basis.