The ATO has released guidance for SMSF members and trustees effected by the 1.6 million balance cap with a member declaration required by 30 June. The member declaration is to give permission to the trustees to commute any balances over $1.6 million into accumulation account. A pension computation request form and trustee minute is required. The ATO release is below for information.
To make it valid;
- Must be completed before July 1, 2017;
- Must be in writing;
- Must be accepted and acknowledged by the Trustees of the Super Fund before July 1 this year;
- Does not have to stipulate the amount of the withdrawal;
- It must stipulate the Methodology – order for the Trustees the balance to be reduced, especially where the client has more than one pension in the SMSF; and
- Must stipulate the order which the pensions are to be reduced.
This is general advice only and if you should wish to discuss further, please contact the office.