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4 thoughts on “Important elements in creating a SMSF pension

  1. This is a good summary Aaron. Thanks.
    When utilising some of the other options implied in TR 2011D3 I also include in the members letter to the trustees specific wording requesting the fund partially commute the pension account and that the lump sum withdrawn should satisfy the minimum account based pension requirements.

  2. Thanks Aaron. If financials not ready then we include a clause noting the financials are not complete but that upon finaisation the exact details will be aded to the pension kit via minute and updated Pension schedule.

    • Hi Liam,

      I agree this is an important step to consider because it is rare (almost impossible) to have a value determined at the time the pension commences. Typically it would require financials to be prepared to year-end for example. Therefore, a two-step process to deal with this ensures that it was the member’s intention to commence at a particular date with confirmation of the commencing value to occur a little later on.

      Regards,
      Aaron

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