The drawdown relief for account-based superannuation pensions will be extended for the 2010-2011 financial year.
The drawdown relief allows account-based, allocated and market-linked pensions to have a 50 per cent reduction in the minimum drawdown amounts.
The relief, which has been in place for two years, will help self-funded retirees recoup capital losses on their pension portfolios and will also mean a reduction in the need to sell assets at a loss in order to meet the minimum payment requirement.
Minimum payments must be paid at least annually from a superannuation account-based pension. Minimum payments are determined by age and the value of the account balance as at 1 July each year.
For more information on self managed superannuation (SMSF) services, contact us.
This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.
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