SMSF receives ATO Letter from a member advising release of $10,000 on Compassionate Grounds relating to medical expenses (not Covid related)
Member under 60 and lets say PAYG of $1,000 is payable. - Does the Fund release the $10,000 and pay the $1,000 PAYG also (essentially $11,000) - Does the Fund pay the $10,000 and the member has to pay the $1,000 PAYG on behalf of the Fund. - Alternatively, does the Fund pay out the net of $9,000 to the member and 'retain' $1,000 to cover the PAYG.
Also - lets say the $10,000 was a quote and the total expenses were only $9,500? - If the member took a $10,000 lump sum is that an issue? - If the member paid multiple invoices from the Fund bank account instead of taking a single lump sum - is that an issue?