Withdrawing Funds From Super

I have 1.7m in pension income stream and 220k in an accumulation account. If I wish to withdraw 20k, can it come out of either account or are there rules which dictate which account it must come from? Obviously I do not want to reduce the size of my pension account. Any thoughts?

 

You dont indicate your age. Assuming you are aged 60 then either option may be tax free. I assume that the $1.7m was a new pension strated in the past 12 days as prior to 30 June the cap was $1.6m. You didnt indicate the tax elements of the two accounts which could later be a factor.

You may be able to choose the $20k as an element of the minimum pension (2% = $34K) or as a lump sum withdrawal from accumulation. You cant just leave the $1.7m pension untouched. A pension must have a minimum pension paid to be complying and access tax free benefits

 

Hi Paul. I am 62 and pension drawdown of 3% starts this month. Hoping to be able to withdraw 20k from accumulation account.

 

The min pension is not 3% for a person aged 62. It is 2%. It may be a strategy to consider the tax element in each account in your decision. And avoid over draw on the pension by deducing the accumulation portion. This is a element that adds to fund tax (not a lot) and could also be tax free as a lum sum.

 

On second thoughts, to use 2% drawdown and supplement this with money from accumulation account as needed, might be the more advantageous way to go for current financial year.