An income stream can be paid as an income stream or you can take a lump sum directly from the pension.
Im assuming youre retired and are able to take a lump sum.
Ive recently read an article that says the pension minimum payment each year can be declared as a lump sum rather than an income stream.
If youre 55-60 then the income stream is taxed differently and usually higher than a lump sum. The first $150k of a lump sum is tax free. Hence I would like to take at least the first $150k of my minimum payments as a lump sum.
Taking the minimum payment as a lump sum seems to be a brand new rule coming from the 2007 tax changes.Even though it does not seem in the spirit of the SIS act??
Is all this really possible?? -and where does it say so?
