Downsizer Contribution: Strategic Considerations

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Question 1 of 5

How are downsizer contributions assessed for social security purposes?

Always exempt under both the income and assets tests as the person must be under age pension age to make a downsizer contribution

If the client is over age pension age and the funds are retained in accumulation phase, they are assessed as an asset but are not deemed

If the client is over age pension age and the funds are used to purchase an account based pension, they are assessed as a grandfathered account based pension under the income test

If the client is over age pension age and the funds are retained in accumulation phase, they are assessed as an asset and deemed under the income test