Can I Withdraw money from my Self-managed Super fund?

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SMSF Lump Sum Withdrawals

If you meet the conditions, then you certainly can. However, if you are thinking of withdrawing money from your self-managed super fund, it is vital to know some key points. One of them is Lump Sum Withdrawals. It refers to the amount found from your SMSF that does not fall under Pension Payment.

You are eligible to make Lump-Sum withdrawals provided you are any of the following:

  • 65 years old, or
  • If you’re somewhere in the middle of the preservation age and 65, you’d have to be Retired.

It doesn’t matter if you have started with your pension or not. Consequently, you are considered ineligible for Lump Sum SMSF withdrawals if your age qualifies but you are not Retired.

Related Post: Can You Use Self-managed Super Fund To Purchase Business?

Know Your Preservation Age

As stated in the earlier paragraph, you’d have to be at the preservation age so that you’re eligible for Lump Sum Withdrawals. Here’s a helpful table to determine yours:

Birth DatePreservation Age
Prior to July 1, 196055
July 1, 1960 – June 30, 196156
July 1, 1961 – June 30, 196257
July 1, 1962 – June 30, 196358
July 1, 1963 – June 30, 196459
From July 1, 196460
Lump Sum Withdrawals Age

 
After using the table, are you not quite at the preservation age? If yes, then you’re barred from availing your Super Benefit. This rule applies with only two exceptions: (1) you qualify for unrestricted benefit; or (2) you have early access eligibility.

What happens with Lump Sum Withdrawals when you’ve already started your Pension?

If you have already begun with your pension, you stand to access benefits differently. Aside from your eligibility for Lump Sum withdrawals, you can also obtain pension income from the SMSF.

Are you any of the following:

  • 65 years old, or
  • Retired and in the middle of the preservation age and 64?

If so, then there are no limits to how much Lump Sum Withdrawals you can make. If you wish to withdraw all of your Super Benefit, you’re allowed by law. However, be mindful that Pension withdrawals are governed by rules different from Lump Sum withdrawals.

Bachelor of Commerce
Certified Practising Accountant
Diploma in Financial Planning
Professional Certificate in SMSF
Approved SMSF Auditor

Phil has been managing director of Griffiths Advisory since it began 29 years ago. With a wealth of experience in taxation, business advisory, superannuation, negative gearing, and wealth creation.

Phil enjoys a healthy active lifestyle which includes surfing, cycling and snowboarding, as well as spending quality time with his wife and two children.

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