SuperGuide

Superannuation and retirement planning information

Q&A: What is required when making lump sum withdrawals from an SMSF in pension mode?

Q&A: What is required when making lump sum withdrawals from an SMSF in pension mode?

Q: Can you explain the conditions or requirements pertaining to lump sum withdrawals from a self-managed super fund in pension mode?

A: If you have a pension in place, any payment that is made out of that pension account must always be treated as a pension payment. It can't be treated as anything else than a pension payment. Unless before that payment gets made, the member sends in or gives the trustees a written request to treat the payment as something else, such as a lump sum.

About the author

Garth McNally

Garth has worked in the Australian Superannuation industry for over 20 years with a specific focus on self-managed super funds. He provides ongoing support and training to individuals as well as to professionals working in the superannuation area, including advisers, accountants and lawyers. He is a regular contributor to industry publications and to the leading professional bodies including Chartered Accountants Australia & New Zealand (CA ANZ).

Learn more about SMSF pensions in the following guides:

Related topics

SMSF pensions SMSFs

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more