Our Benefit Payment Allocation documentation helps members provide instructions to the SMSF trustee as to how they would like pension withdrawals (over the yearly pension minimum amounts) to be allocated amongst their various accounts. The documentation is tailored to the member’s specific requirements, and is drafted as a standing instruction until such time as it is revoked.
A common strategy is to carry out direct drawdowns in excess of the minimum amounts, to accumulation or pension interests with the highest taxable percentage. Options are also provided to nominate the withdrawals as lump sum payments, pension payments or pension commutations with subsequent lump sum withdrawals. The latter may assist in creating room under the member’s transfer balance cap, with a view of making future contributions and potentially commencing a new pension up to the members transfer balance cap. The reduction of taxable components may be of particular value if the superannuation interests are to be paid to non-tax dependents in the event of the member’s passing.
Feel free to contact our Docscentre team on 1800 799 666 if you wish to discuss prior to ordering.