Hi guys, I am a financial adviser. I have a client aged 68 with an SMSF. She has $1m in the SMSF invested in a variety of ways but have only $120,000 in her cash account. The $1m is mostly a taxable component. I would like her to withdraw $360,000 and then immediately re-contribute it back into her super to convert this amount to a tax free component to minimise tax for her adult children beneficiaries on her death. As she does not have sufficient liquid funds to do this in one transaction, I am suggesting that she withdraw and re-contribute the $120,000 that is in her cash account three times in fairly quick succession. Her accountant has indicated that he'd prefer she do it in one transaction, not three. Does anyone know if there is a valid reason why my client should not, or is not allowed, to do the three transactions?
4,046 views
3 replies
Does anyone know if there is a valid reason why my client should not, or is not allowed, to do the three transactions?
No - assuming SMSF is 100% pension account, then that just means more TBARs to lodge.
All replies
Does anyone know if there is a valid reason why my client should not, or is not allowed, to do the three transactions?
No - assuming SMSF is 100% pension account, then that just means more TBARs to lodge.
Thanks so much Bruce for such a speedy reply. Can I ask what difference it might make if there is an accumulation account also as one will probably need to be created to receive the re-contributions? Cheers,
Hi Bruce, ignore my last question. I worked it out myself. Sorry to have wasted your time. Cheers, Rob.
Featured articles
10 Apr 2025 · 4 min read time
8 June 2023 · 2 min read time
28 Aug 2025 · 5 min read time