More from CGPT:
Q. So the lump sum withdrawal is tax-free and the ECPI is irrelevant in that case?
A. Yes, that's correct. If a member of an SMSF chooses to withdraw their benefits as a lump sum, any capital gains made by the SMSF on assets held within the fund will generally be tax-free. In this case, the ECPI rules would not apply, as the lump sum withdrawal is not considered to be an income stream payment.
It's worth noting that there are some circumstances where a lump sum withdrawal may be subject to tax, such as if the member has exceeded their transfer balance cap or if they have received certain types of contributions. However, in general, a lump sum withdrawal from an SMSF is typically tax-free for members who have reached their preservation age. It's always important to seek professional financial advice to understand your personal circumstances and any potential tax implications.
David Pinkerton
npub1jz…aaju6
2023-03-17 11:17:49
in reply to nevent1q…vhyq
Author Public Key
npub1jz0rlhp9ngs3at2kfhzcnc62sxh0y9rxt40x3z003wmdguljky9quaaju6Published at
2023-03-17 11:17:49Event JSON
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"content": "More from CGPT:\n\nQ. So the lump sum withdrawal is tax-free and the ECPI is irrelevant in that case?\n\nA. Yes, that's correct. If a member of an SMSF chooses to withdraw their benefits as a lump sum, any capital gains made by the SMSF on assets held within the fund will generally be tax-free. In this case, the ECPI rules would not apply, as the lump sum withdrawal is not considered to be an income stream payment.\n\nIt's worth noting that there are some circumstances where a lump sum withdrawal may be subject to tax, such as if the member has exceeded their transfer balance cap or if they have received certain types of contributions. However, in general, a lump sum withdrawal from an SMSF is typically tax-free for members who have reached their preservation age. It's always important to seek professional financial advice to understand your personal circumstances and any potential tax implications.",
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