I HAVE AN ACCOUNT BASED PENSION SO IT’S OK NOT TO WITHDRAW MY MINIMUM PENSION BENEFIT FOR THE 2018 YEAR AS I CAN ALWAYS MAKE IT UP LATER
IT’S ACTUALLY NOT OK, there can be serious tax consequences for the fund if you do not withdraw your minimum pension this year. These include:
- No tax exemption – the SMSF may not be entitled to the tax exemption under the superannuation legislation in respect of income (and net capital gains) derived from pension assets for the entire income year, and
- No more transfers of assets in specie to count toward your minimum pension – from 1July 201 7, the fund can no longer transfer assets in specie that count towards your minimumpension. Note that asset transfers in specie are still allowed, but the minimum pension must be paid in cash.