What is the co-contribution income threshold test?

What is the co-contribution income threshold test?

If your total income is equal to or less than $39,837 in the 2020/21 financial year or $41,112 in the 2021/22 financial year and you make after-tax contributions of $1,000 to your super fund, you’ll receive the maximum co-contribution of $500.

How much is the co-contribution?

How the super co-contribution works in 2021/22. If you earn less than $56,112 per year, the government can contribute up to $500 to your super account in a year. Depending on your income, the government will pay in up to 50 cents for every one dollar you contribute yourself from your after-tax income.

How do you qualify for government co contributions?

You should be eligible for a Government Co-contribution as long as:

1. your total income for the 2021/22 financial year is less than $56,112.
2. you make an after-tax super contribution and haven’t claimed a deduction for it.
3. you haven’t contributed more than the non-concessional contributions cap of $110,000)

How do you get a co-contribution?

Eligibility for the super co-contribution

1. have made one or more eligible personal super contributions to your super account during the financial year.
2. pass the two income tests (income threshold and 10% eligible income tests)
3. be less than 71 years old at the end of the financial year.

Are co contributions taxable?

This payment is tax-free and does not affect your taxable income. Your entitlement is based on the amount you have contributed into superannuation and your total assessable income. You could receive a co-contribution of up to a maximum of $500.

What does co-contribution mean?

Super co-contributions help eligible people boost their retirement savings. If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government may also make a contribution (called a co-contribution) up to a maximum amount of $500.

Are co-contributions non concessional?

Any Government co-contribution you receive won’t count towards either your after-tax (non-concessional) or before-tax (concessional) contribution caps. However, the amount you contributed to qualify for the co-contribution scheme will count towards your after-tax (non-concessional) contribution cap.

Is a spouse contribution eligible for Government co-contribution?

Co-contributions To be eligible for the full co-contribution in 2019/20, your spouse needs to contribute $1,000 or more into their super and earn² $38,564, or less. They may receive a lower amount if they contribute less than $1,000 and/or earn between $38,564, and $53,564.

Are co-contributions taxable?

How is co contribution calculated for super fund?

If the super fund has your tax file number (TFN) we will pay it to your super account automatically. The way your co-contribution is calculated depends on the financial year in which you made your personal super contributions.

What was the income threshold for Super contributions in 2012?

The following changes were also made for all contributions made from 1 July 2012: the higher income threshold was set at $15,000 above the lower income threshold. having a total superannuation balance of less than $1.6 million on 30 June of the year before the year the contributions are being made

Can a Ford employee contribute to a Roth 401k?

Ford Motor Company will introduce a Roth option to the 401(k) plan next year. With the addition of this feature, employees will have the flexibility to direct contributions among both types of 401(k) accounts as their current and future tax situation dictates.

How to contact Ford compensation and benefits office?

Mainstay has brought this issue to the attention of the Ford Compensation and Benefits Office and is working with them towards a resolution. Please do not hesitate to contact Mainstay toll-free at 1-866-444-6246 with questions regarding this ALERT or for assistance in reallocating your Ford 401 (k) portfolio.