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.