TTR consequences of exceeding maximum pension payments | Accurium

Technical article
A transition to retirement pension is a type of account-based pension which has special payment restrictions. A member can make a payment in each financial year that is no more than 10% of the opening pension balance at 1 July. If this payment limit is exceeded then the pension may not have met the minimum pension standards. This article discusses the consequences of exceeding the maximum payment limit of a transition to retirement pension.

Update July 2018: Please note that the tax-free earnings status on assets supporting a Transition to Retirement income streams (TRIS) changed at 1 July 2017. Only where the TRIS pensioner has reported an applicable condition of release to the SMSF Trustee, or attained age 65, will the earnings on a TRIS be exempt from income tax. For more information on this please refer to our article Revisiting TTR strategies for clients.

Disclaimer

This information is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, legal advice or tax advice, and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances. The information is provided in good faith and derived from sources believed to be accurate and current at the date of publication. While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. We recommend that you seek appropriate professional advice before making any financial decisions.