#9589
Awan Hammad
Participant

    Hi Alkesh

    Yes, a reversionary pension counts towards the wife’s transfer balance cap (TBC). It counts towards the cap 12 months after the death of the husband.

    In your example the wife will commute her pension to accumulation and that will count as a debit towards her TBC. The reversionary pension will count as a credit to the TBC.

    A good summary of the rules with examples can be found at:

    https://www.smsfassociation.com/wp-content/uploads/2017/01/Goto-Guide-1.6-mil-Transfer-Balance-Cap.pdf

    Thanks
    The Auditors Institute

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