I have reached my personal TBC and would like to know if a lump sum withdrawal from my SABP will create space for me to later transfer funds from another accumulation account to the pension phase.
No, @S8anic ; if you exploited 100 per cent of your transfer balance cap, that's it. You can't transfer any more to a pension-phase account.
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No, @S8anic ; if you exploited 100 per cent of your transfer balance cap, that's it. You can't transfer any more to a pension-phase account.
Transfer balance cap | Australian Taxation Office
Thanks for your reply.
The previous answer you've been provided with is not correct. Lump sum withdrawals/commutations from a pension account will deduct from your transfer balance account, so, whilst your overall transfer balance cap may not change, a lump sum withdrawal/commutation from a pension account would generally mean that you would create some space to then later transfer further funds into the pension phase if you wanted to.
Hi @MSO88,
Whether you create space in your transfer balance cap depends on the type of withdrawal from the pension account.
A lump sum that is a commutation of your pension will usually create a debit in your transfer balance account, which can create additional cap space.
However, not all lump sum withdrawals from a pension count as a commutation for transfer balance cap purposes.
From what was described, the key issue is whether the withdrawal is being treated as:
- a pension payment
- a commutation of the pension.
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