what's involved?
To reset or 'reboot' your TTR strategy, you can ‘roll back’ the balance of your TTR into your super account, then re-establish a new TTR with the increased super balance. One thing to consider is whether you will forfeit the Retirement Reward if you do this within a certain period. It’s a good idea to chat with one of our advisers beforehand.
what are the advantages?
The government imposes minimum and maximum drawdown limits based on a percentage of the balance of your TTR Income Stream account. By rebooting, you can potentially access a higher income from the income stream and contribute more into super.
There is no limit on how much you can invest in a TTR account. However, if your total super balance is more than $1.9 million you will not be able to make any further after-tax contributions to super (i.e. from your take-home pay or savings).
things to look out for
The income you receive from your TTR income stream may impact your tax status and both you and your partner’s (if you have one) eligibility for Centrelink benefits. Make sure you speak to an expert to find out if this will affect you.
There may also be some downsides to rebooting if you started your income stream before 1 January 2015, so speak to an adviser before changing your strategy.
Did you start an income stream before 1 January 2015?
If so, Centrelink captures these accounts under the old income test rules. If any changes are made to the account, this may impact how it is assessed. It's important to speak to Centrelink or seek advice from a financial adviser before making any changes to an income stream set up before this date.
Are you planning to stop work before turning 65?
A TTR is taxed up to 15% on the investment earnings.
If you are between 60 and 65, make sure you let us know if you’re retired or ceased an employment arrangement. This is so we can convert your TTR to a HESTA Retirement Income Stream (RIS), where the investment earnings are tax free and there's no upper limit on how much you can withdraw. Bear in mind, the minimum yearly drawdown amounts (set by the Government) that apply to a TTR also apply to a RIS.
To let us know you have retired, simply complete the Convert from TTR to HESTA Income Stream form (pdf).
