I just learned, that 9% of my salary in Australia will go into a superannuation pension fund. However I do not plan to retire in Australia. Does someone know, if I can retain the money from the fund, if I depart from Australia? What's the process?

Many thanks, Gleb

Yes you can transfer the money back. Just get in touch with the company that was used for the superanuation.

Gleb,

As of quite recently you can obtain a refund of superannuation contributions made on your behalf less a tax deduction - but only if you have been in Australia on a temporary visa and are departing permanently.

There are more details on the ATO's website at www.ato.gov.au - search on "superannuation" and "departing temporary residents"

Hope this helps.

quote:

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Originally posted by gloumer:
I just learned, that 9% of my salary in Australia will go into a superannuation pension fund. However I do not plan to retire in Australia. Does someone know, if I can retain the money from the fund, if I depart from Australia? What's the process?

Many thanks, Gleb

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Alan Collett
alan-at-gomatilda-dot-com
Registered Migration Agent Number 0102534
and a Fellow of the Institute of Chartered Accountants in England and Wales
http://www.gomatilda.com and
http://www.collettandco.co.uk
Offices in Southampton, England; Perth, Australia; and Melbourne, Australia

If you have Australian superannuation which cannot be transferred to the UK, what is the best way to benefit from it - have it paid into an Australian bank account and transfer the money to the UK from there?

I would like to retain my eligibility to NHS healthcare and state benefits in the UK whilst I am in Australia (like gloumer I don't plan to retire in Australia). Would it be wise to make arrangements to continue to pay National Insurance in the UK in my absence?

Thanks to anyone who can help!

I have a similar situation. If everything pans out I will relocate to Sydney for several years. In the US, we have a 401K plan which is almost identical to Superannuation. Here I can transfer money from one employer to another as my career progresses. I would like to know if I can also rollover this money from my Personal Super to my 401k without many, if any, tax implications. Does anyone know?

From what I've read about Super there is no way to rollover into a 401k. I would just treat it as a separate retirement fund and when you get of preservation age (same thing as minimum age for 401k) of 55 then you can start taking distributions from it.

Here are some important differences between a 401k and Superannuation Fund:

401k is tax deferred until you start taking distibutions. It reduces your taxable income and has no money taken out of your contributions.

There is no cap on how much this fund can grow, you would just pay LT gains tax (20% in the US) on it. I don't know how the AU treat a 401k distribution, but that's something your going to ask a tax professional.

Superannuation is tax-reduced. The AU tax people take 15% on the incoming contribution. This is opposed to the 30-47% normally taken if you just took it as regular income.

There is a cap on the amounts and above that amount you lose the tax reduction. There is a limit of something like 1.1 million (and believe me if your doing this early enough and investing agressively it is possible to reach such a number). They call it Reasonable Benefit limit. Once it's above this 1.1 million the AU tax people tax it at the highest marginal rate (I think this is currently 47%). The 1.1 million number differs on whether you take as lump sum or not.

I have a 401k and will have superannuation once I start working in AU. I expect once I retire I will be getting funds from both accounts. For me this is an event at least 25-35 years from now but it's these early contributions that grow the most because of compounding and agressive investing.

I highly recommend going to www.ato.gov.au to read up on superannuation AND consulting a tax professional so you can plan for your retirement future.

Good luck