Aged over 60 and wanting to do renovations on home. If I withdraw a lump sum from my super are there tax implications I need to consider?
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Hi @LeaDev,
If you’re aged 60 or over and withdrawing from a super pension account made up of taxed elements, then most lump sums are tax‑free in your hands.
In an SMSF, it’s also common for the fund to be entirely taxed at the fund level, meaning there may not be an untaxed element to worry about.
It’s also true that you can re‑contribute amounts back into super in the future, provided you meet the contribution rules at the time.
You can read how super can be withdrawn as a lump sum or income stream in retirement, and how tax applies once you’re receiving a retirement‑phase pension on our website.
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You say you're over 60, so you're past preservation age. Tick.
Have you also achieved a condition of release ? Search ATO blog pages for details.
What is the flavour of your retirement benefits in your fund ?
Taxed, Untaxed, Tax free ?
You should consider having a meaningful discussion with an accountant who is fully experienced with superannuation matters.
Thanks Colin,
You can tell I'm a newbie at this.... yes, I am retired and have set up my pension fund.
I have a SMSF and the majority of the money was super paid by my employer, so I am assuming it is taxed already via the fund. There is a small amount I contributed as NCC so that should be tax free. The only untaxed amount I assume is anything that my underlying assets have earned so far this year.
I have paid myself my annual minimum pension amount.
All my reading suggests that I could take a lump sum without having to pay tax on it. And that I could recontribute that amount back in via my accumulation account at some point in the future.
Seems too good to be true so just wanted to make sure I hadn't missed something vital....
Thanks,
Lea
@LeaDev You really should seriously consider having a meaningful discussion with an accountant who is fully experienced with superannuation matters.
Hi @LeaDev,
If you’re aged 60 or over and withdrawing from a super pension account made up of taxed elements, then most lump sums are tax‑free in your hands.
In an SMSF, it’s also common for the fund to be entirely taxed at the fund level, meaning there may not be an untaxed element to worry about.
It’s also true that you can re‑contribute amounts back into super in the future, provided you meet the contribution rules at the time.
You can read how super can be withdrawn as a lump sum or income stream in retirement, and how tax applies once you’re receiving a retirement‑phase pension on our website.
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