SMSF Withdrawals

[shaunmp]

Hey ASF Members,

What about this flooding huh? I live in Burpengary north of Brisbane and the flooding is BAD....I have been trapped on my land the last 2 days - luckily we have acreage and the house is on a high point.

Anyway, I had a very straightforward question in regards to Self Managed Super Funds.

Question:

If I open a trading account in my SMSF's name, if I profit past my minimum point of annual contributions can I withdraw on some of these profits? I'm 22 years of age so obviously it would be well in advance of retirement.

If not, is there any way of withdrawing profits from a SMSF? Or is it completely not possible?

I hope anyone else on here who is from Queensland is safe!

Much appreciated folks.

Shaun

 

[Judd]

Hey ASF Members,

What about this flooding huh? I live in Burpengary north of Brisbane and the flooding is BAD....I have been trapped on my land the last 2 days - luckily we have acreage and the house is on a high point.

Anyway, I had a very straightforward question in regards to Self Managed Super Funds.

Question:

If I open a trading account in my SMSF's name, if I profit past my minimum point of annual contributions can I withdraw on some of these profits? I'm 22 years of age so obviously it would be well in advance of retirement.

If not, is there any way of withdrawing profits from a SMSF? Or is it completely not possible?

I hope anyone else on here who is from Queensland is safe!

Much appreciated folks.

Shaun

Short answer is NO. You are at age 22 well below preservation age which is that age when you can withdraw benefits from your SMSF. The funds are there to assist with your retirement and not for personal day to day use until that time.

Read this link.

http://www.ato.gov.au/superfunds/content.asp?doc=/content/60489.htm&page=9&H9

 

[Junior]

The only way you can access superannuation monies at your age is if you are suffering severe financial hardship, are permanently incapacitated or have a terminal medical condition.....so the answer is most likely no!

 

[pixel]

... and if your SMSF makes a profit, that has no bearing on your contributions. Those contributions must be paid into the fund, regardless of its P/L situation.

With that many restrictions and uncertainty about future legislation, I would only pay the mandatory minimum and run an extra portfolio in a discretionary family trust, over which I have full control.

 

[jimmyizgod]

and if you do use the "severe financial hardship" excuse im pretty sure there are a levy of fees + a taxing of i think 20% (correct me if im wrong)

 

[shaunmp]

Thanks for all your responses.

Much appreciated!