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  1. Vlade Landberry

     /  July 14, 2021

    Say I have $100K in my Pension account with 50K in shares & 50K cash can I still buy and sell shares in the pension account tax free?


    • The strict term is Exempt from tax rather than tax free as you have to meet criteria each year like taking the minimum Required pension. But in general any profits from sales in tax phase are Exempt


  2. Biddo Lee

     /  August 30, 2017

    If SMSF members often have an accumulation account and a pension account at the same time, what if the fund in accumulation account grows to a sufficient amount, can the member open an additional (2) pension accounts please?


    • Hi Biddo

      Yes a member can hold as many pension accounts as they wish. They can use this to keep larger tax free contributions separate from taxable components if timed properly


  3. Freddie Ambler

     /  April 26, 2013

    If I leave super in accumulation phase I pay 15% tax on the earnings. If the earnings are 5% of the funds then the annual tax is less than 1% of the funds. This small tax cost needs to be considered against the loss of flexibility (compulsory withdrawal of funds) and additional costs of the pension (eg brokerage fees for the withdrawals).


    • Hi Freddie

      I agree that your strategy may work for some but imagine a year like we are having now where in some cases people are looking at 20% plus returns on their portfolios and actually taking some of the gains and incurring the CGT as they feel the markets may be fully priced. In this case they are looking at substantially more in taxes if still in accumulation. Any fund should have a cash reserve in a high interest account to fund pensions so brokerage fees should not come in to it. Oh and the Nil tax means people are more likely to take some profits and not to hold on to stocks just because of CGT.

      But that is the beauty of a SMSF, you have the ability to make those decisions to suit your own circumstances and beliefs. I have clients who have gone in to and back from pension phase as and when it suits them.

      best wishes and thanks for engaging in comment.


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