I’m in a tricky spot. I have money in the US that I need to transfer here

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I’m originally from the UK. Prior to coming to Australia 16 years ago (I’m now a citizen), I worked in the USA for four years where I received a company pension which had a balance of $US70,000 the last time I checked it some years ago. I also paid into a 401K scheme that had an element of matching from my employer, the current balance of which is approximately $US239,000. I’m at an age where I can access both without penalty, and I believe they can both be paid as lump sums, which is my preference.

However, I cannot find any advice on how best to access the monies, what the full tax implications may be on both ends, and how to transfer them in a tax-efficient way.

You will need help from someone in the US and your Australian accountant can help with any tax consequences.Simon LetchYes, this is a really tricky spot to be in. Australian-based financial planners’ licences and professional indemnity insurance won’t allow them to give advice on US schemes, so you would need to obtain help from someone in the US. The challenge you may then strike is that their licensing and insurances may not permit them to give advice to someone who is not on US soil, due to legal jurisdiction issues.

I suggest you talk to the fund providers and see if they have some sort of basic support services that might be able to guide you. Your accountant can help with any tax consequences on the funds arriving in Australia.

I am currently working but have been diagnosed with pancreatic cancer. I have been using my sick leave and am now starting to use my long service leave as my weekly salary. Should I retire from work, or should I continue to work and be paid through my long service leave? Would a one-off payout of my long service leave be more financially beneficial than my weekly salary using up my long service leave?

Thank you for your question and very sorry to hear of your diagnosis. Staying on the books throughout your long service leave period is likely to produce a slightly better outcome as you will continue to accrue annual leave during this time. The benefit is marginal, however, so if you would feel more comfortable getting paid out, I wouldn’t be talking you out of that decision.

I’m retired but doing occasional part-time work. My employer insists they must comply with government regulations which require them to pay superannuation into an accumulation account.

Because of account-keeping fees and taxation being taken out, I’m missing some income. The total amount involved would be under $300 a year.

Given I am 75 years of age, is it really necessary for the employer to pay superannuation this way? Can’t it be paid directly to me?

Until 2022 it was the case that superannuation did not need to be paid where income was below $450 a month. However, since then, employers are required to pay super on all income, no matter how small, for all employees over 18 years of age. There is no upper limit from an age perspective, so even if you’re doing part-time work at 85, they will still need to pay super.

With regard to your concern about the contributions tax being applied, you may qualify for the low-income superannuation tax offset, which is specifically designed to address this problem. You will get a refund for the contribution tax paid if it is the case that you would have otherwise paid no tax, had this income been received as a wage.

Paul Benson is a certified financial planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: paul@financialautonomy.com.au

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