Make sure you don't go over the limits

While the Government has made the tax treatment of super very favourable to encourage us all to save for retirement, it has set limits. For most of us, it is hard to imagine going over the limits, but they are still worth knowing about as there are penalties if you do.

• There is a generally a $50,000 p.a. cap for concessional contributions

  These include your employer's SG contributions and any salary sacrafice contributions you make. However if you are aged 50 or older in the year you make the contribution, you may contribute up to $100,000 a year until the 2011-12 financial year. From the 2012-13 financial year, you will be subject to the same $50,000 p.a. limit as everyone else. If you do go over the limits for tax-deductable contributions, the excess contribution has to stay within Health Super where it will be taxed at 46.5% (instead of 15%).

• There is generally a $150,000 p.a. cap for non-concessional contributions

  These are personal, after tax contributions. If you are under age 65 you can bring forward two years of contributions and make three years worth of contributions all at once, i.e. you can make a total contribution of $450,000 in any one financial year. If you do this you are not allowed to make contributions for the next two years. It cannot stay in Health Super.