We would like to remind our SMSF retirees to check your super fund records to ensure you have drawn your 2019/20 minimum pension payment by 30 June 2020.
If you forget to withdraw or do not draw enough, your super fund will be subject to 15% tax on its pension asset investment earnings, rather than being tax free.
You might recall that in March 2020, the Government reduced the minimum annual payment you are required to withdraw by 50% for the 2019/20 and 2020/21 financial years.
The Government announced this measure to assist retirees, who do not wish to sell their investment assets to fund minimum pension payments, where the value of those assets has reduced due to the impact of the economic downturn caused by Covid-19.
For those retirees who have already withdrawn in excess of 50% of their minimum pension payment, you are not able to put the amount of that excess back into your super fund.
Need further assistance?
Our team at Allan Hall Business Advisors can assist you to calculate the amount of pension that you are required to withdraw. Please do not hesitate to contact us should you need assistance or have any further questions.
Disclaimer: This article contains general advice only and has been prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. The information provided in this newsletter is objectively ascertainable and therefore does not constitute financial product advice. If you require personal advice, please contact us to arrange an appointment with one of our licensed SMSF advisors.