Transfer Balance Cap 1.6 Million

Previous

Next

4 Comments

  1. Andy

    Hi I have just come across your site, it looks good. Is there any tax if I have $1.6m in my SMSF pension phase and say $1.0 m that I have commuted back to accumulation on 30/6/17 and I want to withdraw all $2.6m. I am 70 years old. Would appreciate your comments?

    Reply
    • Chris Strano

      Hi Andy, a withdrawal from super or pension accounts for people over age 60 is generally tax free. However, if the balance includes a ‘taxable (untaxed)’ component, there may be tax payable.Click here to understand tax on the taxable (untaxed) component. Also, depending on how that $2.6M is invested once withdrawn from super, there may be tax on future earnings (e.g. income and capital gains taxed at marginal tax rates).

      Reply
  2. Don

    I turned 60 years of age on 31/07/2017 and will be continuing working full time. I want to start a TTR (TRIS). I have an account balance of $3M as at 1/7/2017. Am I able to take the maximum $300,000 as a TTR in 2017/2018 and not pay any tax as my SMSF remains in accumulation stage.

    Reply
    • Chris Strano

      G’day Don
      A person aged 60 has met their superannuation preservation age, meaning they have the ability to commence a TTR Pension. By doing so, all or some of an accumulation balance can be used to start the TTR pension. Then, the member must draw an income of between 4% and 10% of their TTR account balance each financial year (pro-rata for part years).
      TTR Pension income is received tax free for people over age 60, unless it includes a taxable (untaxed) component, which may incur tax. Click here to read more.
      A TTR Pension can be transferred back to accumulation phase provided minimum payments for that year have been made.
      A TTR Pension does not count towards the Transfer Balance Cap.

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *