Question
Facts of the matter.
- We have 2 super funds; both have 2 members myself and my wife. We both are in pension mode.
- Super fund 1 has cash only and has concessional contribution part.
- Super fund (2) is made of non-concessional contribution only. It has property, cash, and some small number of shares. This is the fund we draw pension for ourselves.
- I am employee of my company but thinking of terminating it soon and may work part time as sole trader after 3-6 months later.
- We both have decided to draw the whole amount out from fund one (1) which has cash only to use for our personal needs now.
- Our pension will continue from 2nd fund.
My questions are:
a. What will be the correct procedure?
b. The cash is needed at this moment, so can we withdraw all the cash and paperwork can be done as continuation?
Answer
Once you reach 65, you can access your super benefit at any time whether you have retired or not.
You may access your super benefit when you reach 65 as a lump sum withdrawal. A lump sum withdrawal is simply an amount accessed from your SMSF that is not a pension payment.
You can make lump sum withdrawals whenever you like from your super fund once you have turned 65.
There is no maximum lump sum amount if you are aged over 65 and you are free to access all your super benefit as desired.
Not tax is payable on lump sum withdrawals made after 65.