I am 55 and have just recently converted my SMSF over to Pension Phase (transition to retirement)
I have my main SMSF Administration account established with 2 linking accounts, Accumulation account and Pension account.
I haven't go any work as yet so my Accumulation account remains empty with a zero balance.
I have decided to make pension payments of $5000 per month.
With the tax amount being 15% my withholding tax component is $750 per month, leaving a net amount of $4250.
My question is do I draw down the full $5000 from the Administration account to the Pension account.
Then from this Pension account pay myself the $4250, leaving the $750 tax amount remaining in this Pension account to accumulate.
or
Do I just draw down the $4250 from the SMSF Administration account to the Pension account leaving the $750 tax component in the Administration account.
I would appreciate any comments.
Cheers
Wombat
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