Officially old and turned 60 recently, I have investment income outside Super (no formal job) so I contribute voluntary concessional contributions in order to claim a tax deduction on that income earned outside Super.
I could now convert that accumulation account to a pension account and drawdown say $30k per annum tax free and recontribute it to a new accumulation account to claim said $30k as a tax deduction. Gives me more income outside super (cirrently being used to make $30k concessional deductions) to spend on cocaine and hookers or waste it I guess. (I'm so old I remember the George Burns joke, albeit I have mangled it).
Few notes on what I've found out: 4% min draw down needed from age 60-65, 5% min after that and must have an honest to goodness job after 67 in order to have an accumulation account.
Most people seem to use that strategy to avoid super inheritance tax, not sure how that works for that situation, have no dependents anyway and have no insurance in Super becase of that. Have spoken to an advisor at ART Super about the mechanics of it all and will speak to my accountant.
Looking for a sanity check not financual advice per se.
Well yes, this is "Australia Finance" i.e AusFinance which could be mistaken for Austin (Texas) finance I suppose ? Is that what you mean ?
This is about Australia's private pension system, Superannuation and various tax and income strategies used therein. It has zero relevance outside Australia.
It just seems odd that you said
But AFAIK there isn't one...?
I have to admit not researching that side of it too much because i have no dependents but in the research I did do about re-contribution strategies in super it was mentioned all the time. So I "duck duck went" and
https://www.wealthcopilot.com.au/reduce-super-death-benefits-tax-guide
https://stockhead.com.au/experts/if-youre-clever-you-can-avoid-an-inheritance-tax/
https://www.eclipseadvisory.com.au/financial-insights/financial-planning/super-inheritance-tax/