Withdrawal From An Accumulation Account

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6 Comments

  1. richard

    good evening I have a smsf in pension mode ,,can I roll over to a accumulation account that I will commence inside the SMSF. CAN YOU DO A PARTIAL ROLL OVER TO A NEW ACCUMULATION ACCOUNT .such as transferring some of my shares only to this new accumulation account.. do you have to sell the shares first then roll over the money value.. thank you

    Reply
  2. Rory

    Hi Chris, I’ll be 59 in May 21, our intent is to retire shortly after, but to return to the UK (dual citizenship) to be with our grand kids for the remainder of our life. I’ll be over preservation age. I’m assuming I will be able to take the full lump sum as I have no intent to work or return to Australia would I still be eligible for tax.

    Reply
    • Chris Strano

      Hi Rory,
      Even though you will be overseas, all of the standard preservation rules will apply as if you were living in Australia. You can only access your super once you meet a superannuation condition of release (e.g. retired after reaching preservation age with no intention of returning to work or reaching age 65).
      As far as tax goes, tax-free withdrawals from super generally only occur after age 60. The tax payable on withdrawals will depend on whether or not there is a tax treaty (which I believe there is between UK and Aus, but I am not an expert on this) and whether you are over or under age 60. If you are under age 60 when the withdrawal is made, there may be tax payable depending on the tax components that make up your balance and whether the taxable component withdrawal exceeds the lifetime low-rate cap (currently $215,000). Read more here https://www.superguy.com.au/tax-on-superannuation-taxable-component/
      Regards,
      Chris

      Reply
  3. Ashley Nguyen

    Hi Chris
    If a member of an SMSF has a balance sitting in “unrestricted non-preserved” and also some balance in “preserved”. Can he make a lump sum withdrawal from the “unrestricted non-preserved” only? can these component be withdrawn separately?

    Thanks
    Ashley Nguyen

    Reply
    • Chris Strano

      Hi Ashley, unrestricted non-preserved components within super are generally fully accessible at any time – even if the super fund has some preserved components. Non-preserved components can be withdrawn separately, unlike tax components which need to be drawn proportionately. Just be mindful of any tax implications of the withdrawals.
      Chris

      Reply

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