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  • Lump sum and income stream (pension)

    A self-managed super fund (SMSF) can pay benefits in the form of a lump sum, an income stream (pension) or a combination of both, provided the payment is allowed under super law and the fund's trust deed.

    You have to withhold tax from benefit payments to members who are:

    • under 60 years old
    • under 60 years old and your member receives a reversionary capped defined benefit income stream, where the deceased was 60 years or over when they died.
    • 60 years old or over if the benefit is from a capped defined benefit income stream.

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    Duration 2:27. A transcript of Planning for retirement is also available.

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    Last modified: 10 Jan 2018QC 23340