|Payments Above ABP Minimum||$440|
This documentation is designed to:
- ensure that all payments from an SMSF above an ABP’s minimum constitute lump sums from accumulation or — if the member has no accumulation — are partially commuted lump sums (ie, debits to transfer balance account) and
- assist and provide SMSF trustees, members and advisers with practical guidance on the issue of the SMSF trustee making payments above the ABP minimum to the member during a financial year.
Broadly, the payments above the ABP minimum – unless carefully structured – will exhaust the capital supporting the pension significantly faster than would otherwise be the case. For more information on this issue, please refer to the following links:
There are various strategies that are useful in addressing this issue, and these are discussed in the Memo provided as part of this documentation.
Please note that each suite of documentation applies to one member in one SMSF. The documentation is designed to apply to payments in respect of all ABPs for the same member in the same SMSF above the relevant member’s ABP minimum(s), including payments in future income years (subject to any change in law, etc). Additional suites of documentation are needed if there is a different member or a different SMSF.
- Covering letter
- Member application
- Trustee resolutions
Significant discounts can apply where you need to document more than 10 suites of documentation. Please contact us to take advantage of this opportunity. T&Cs apply.
We also offer numerous SMSF documents & strategy kits to assist SMSF trustees and advisers.