The Redwood Advisory promise is to make taking control of your super easy through your SMSF.
This article will highlight the keyconsiderations/ rules of witdrawing your benefits from an SMSF.
A rule of thumb is that except in a special set of defined circumstances, such as severe financial hardship or permanent incapacity, you cannot withdraw your superannuation from SMSF until you reach the ‘preservation age’ and satisfy a ‘condition of release’.
The preservation age, which is the age you must be before you can withdraw your money, is 60 years old for most people. For those born before July 1, 1960 it is 55, and there is a phased transition for those born up to June 30, 1964.
To satisfy a condition of release, you have to be retired or turn 65 years old. An exception to the condition of release requirement is the transition to retirement pension.
There may be a case where a member incorrectly deposited an amount into the SMSF. In this case, we recommend you consult with your appointed fund auditor or contact Redwood Advisory on 1300 790 110. If you are to withdraw the amount it is important to correct the error immediately and document the error on the Trustee files with details of events which should be signed by all members and presented for audit.
When you are eligible to withdraw from your fund, you can choose to take these benefits as a lump sum payment, income stream pension or annuity, or a combination of the above
This article was written by Ivan Filipovic – Director of Redwood Advisory SMSF Specialists. Please call us on 1300 790 110 to discuss the above.