queries ie smsf growth thru spp and dividend

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    I have some queries re SMSF growth thru SPP and dividend which I seek clarification from knowledgeable readers here. My case is as follows:

    I transfer my money $450K into my SMSF (one member only). I use most of fund to buy shares in XYZ Company. I go into Pension Mode. So all my SMSF in the form of shares and cash are now in Pension Mode. A few weeks later, XYZ Co. declares dividends which I receive in the form of new shares through dividend reinvestment plan. A few more weeks later, XYZ Co. declares a SPP. I purchase part of my SPP entitlement using the remaining cash in my SMSF’s pension pot. The remaining SPP entitlement are purchased from my personal cash. The questions are:

    1)The shares issued through dividend reinvestment plan will be in the pension pot. Correct?

    2)Shares purchased via SPP using cash in the pension pot are in the pension pot. Correct?

    3)Shares purchased via SPP using personal cash are in the accumulation pot. Correct?

    4)Since my UDC is $450K to start with, the personal cash used to buy remaining SPP will exceed the contribution limit and I will be penalised by ATO? Correct?


 
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