Q: As my SMSF balance is about double the transfer balance cap, how does proportioning of the income work in the portions that are separated into pension phase and accumulation phase? Both the income stream from the pension phase and any lump sum withdrawals from the accumulation phase would be tax free as I’m over 60. If I made a lump sum withdrawal from the accumulation portion, does re-portioning take place? Is portioning a fluid process so that balance changes in the two separate sides continue to vary?
A: Look, the whole issue around proportioning of members balances across the tax components, it can often be quite confusing. I want to try and if I can, make it as simple as possible here. Remember that any withdrawal that we might make from a taxed super fund, like our usual super funds, those payments would usually be tax free to us when we’re aged 60 or older.
Leave a Reply
You must be logged in to post a comment.