Budget 2015 shone a light on a RA tax loop hole

Some aspects of the 2015 Budget put fear into some hearts. One point in particular remains in flux and we wait to see which way legislation will go. In 2008, the maximum age at which you could contribute to a retirement annuity was removed; and at the same time retirement fund benefits were excluded from the dutiable estate. This meant that you could contribute to an RA as much and for as long as you like and when you pass on, the money goes to the 37C beneficiaries tax free. The minister has noticed this tax loop hole and has plans to close it up. Denver Keswell, senior legal advisor with Nedgroup Investments tells us why this is a problem and what may happen in the future.