How do you start an Account-Based Pension in an APRA-regulated fund? What about your own SMSF? This webinar will walk through the key steps and give you key tips and traps to get the best outcomes for you and your family.
Webinar: Starting an account-based pension
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Responses
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Hi Garth,
For a super balance of $700,000, starting a pension account after turning 60 and receiving yearly minimum payment. Each year withdraw a lump sum $100,000 from the pension account, and recontribute to a super account, and then immediately start a second pension account with this $100,000. Repeat this process in the following 6 years(assuming no interest being earned), the end result would be the total $700,000 would be tax-free, and investment income from this $700,000 during the whole process would be tax free as well. That is my understanding for above situation after watching your seminar. Please advise. Thanks.
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Hi Feng,
Yes, this would be possible assuming you remain eligible to contribute to superannuation during the years in question. Withdrawals and re-contributions of amounts larger than $100,000 are also possible under the non-concessional cap and bring forward rule.
You can read more in our content on the recontribution strategy, making contributions after age 60 and adding contributions when you have started a pension.
Best wishes
The SuperGuide team
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Hi Garth,
Starting a super pension by ending employment after turning 60, half year later, starting a new employment. The new employment income will be taxed at marginal rate – I was told as such, is this correct? Also, for the new employment: if it is from the same employer as the ending employment, would that be ok?
Thanks
Feng JIANG-
Hi Feng,
Yes, any employment income is taxed at marginal rates.
It is possible to commence new employment with an employer you have left in the past, including if you left that employer after turning 60 and accessed super. The original termination of employment should be genuine (i.e., any remaining leave should be paid out, and you should be appropriately terminated in the employer’s systems). There is nothing to prevent you from applying for a new position with that employer in future and starting work there again.
Best wishes
The SuperGuide team
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