I found this on the ATO website and was wondering if anyone else has seen it, knows of it or even done it?
Terminating gainful employmentSubject to the governing rules of your fund, where a member (who has not met another condition of release) has ceased employment with an employer who had contributed to the member's fund, on termination:
- all preserved benefits may be paid, but they must be taken as a lifetime pension or annuity, which can't be commuted into a lump sum (unless the preserved benefits are less than $200, in which case the member can cash the benefits without restriction)
- all unrestricted non-preserved benefits can be cashed out on request from the member (no cashing restrictions).
ATO Page reference QC 46861
I rang the ATO and they say it is for people with enough to retire that wish to but have not yet met their preservation age, hence the no withdrawals allowed clause in there. They don't want you taking all your money out but are fine with you using it for retirement as is the intention of Superannuation. It of course would only be applicable with those with sufficient balances to fund retirement from.
Industry Super fund are telling me I have to have met my preservation age. ATO are saying I don't, if I go down this path.
Any thoughts, ideas?
