|Payments Above ABP Minimum||$440|
|Pricing includes GST|
This suite of documentation can be used in respect of ABPs and TRISs in retirement phase, collectively referred to in this suite of documentation as Pensions.
This documentation is designed to:
- ensure that all payments from an SMSF above a Pension’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 Pension minimum to the member during a financial year.
Broadly, payments above the minimum pension amount – unless carefully structured – will exhaust the capital supporting the pension significantly faster than would otherwise be the case. Naturally, unless appropriate documentation is in place prior to the payment being made, the entire amount of the payment will constitute a pension payment. Given that each person only has one lifetime TBC (currently $1.6 million) and recent data suggests that, on average, people withdraw more than 30% above the minimum pension payment each financial year, having appropriate documents in place can significantly assist in preserving a person’s transfer balance account.
For more information on this issue, click on the articles listed below:
- Important trap: Payments above ABP minimum
- Payments above ABP minimum – Reasons to prospectively document a strategy ASAP
- Minimising lost opportunity: Payments above ABP minimum
- Payments above ABP minimum documentation now covers TRISs in retirement phase
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 Pensions for the same member in the same SMSF above the relevant member’s minimum payment in a financial year, 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.