Q: My wife and I are both over 70 and are the only members of our SMSF. On 30 June, my wife had a nil balance in our SMSF but will make a $300,000 non-concessional contribution in July and commence an account-based pension at the 5% rate. Does her nil balance in the previous financial year predetermine the amount of pension she is permitted to take, from an ATO perspective?
A: Some issues to consider here. Remember, the pension standards say that the minimum pension must be paid each year and it's based on the member's age on the date the pension starts, and the amount used to commence that pension.
