paying pension dilema

  1. 83 Posts.
    Hi

    I am the trustee of my SMSF.

    I have just realised that one of my pensions has a Term Deposit in it ONLY. ie no liquid cash. i need to pay the minimum pension (2%) by the end of June.

    I have Pension #2 with heaps of cash in it.

    3 options???

    Option 1:- I thought Id just transfer some cash into Pension 1 from the acculumation account, then pay the pension
    -The ATO says "NO" I cant add to pension

    Option 2:- Then I thought I might pay Pension 1 payment out of pension 2?
    but the ATO says "NO" -I must pay the pension from its own account.

    Then I thought I'd roll back pension1 to accumulation phase
    then add some cash from the accumulation account and restart pension 1.
    The ATO says "NO" because I must pay the minimum pension payment BEFORE I roll it back.

    Mmmmm Catch 22 everywhere.
    - question

    How do I pay the minmum pension payment?

    What happens in practise if I cant?
    (Non complience - hefty fine???)

    Oh what a pickel!
 
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