Lump Sum Payment part way through the year

Hi everyone,

one of our client is wanting to take a lump sum from their SMSF. The client is over 60 and retired.
I just wanted to know, when processing that particular transaction if I needed to do my trust distribution as well. I usually process them at the end of the year once I have received the annual tax statements, in the meantime, all trust distribution received are posted to Distribution receivable.
Just wanted to know if anyone has any idea of the above and has had to do one in the past

I think there’s a few issues to think about when making that decision, such as:

  • is it going to be a full balance withdrawal for the member (then yes)
  • is the withdrawal of such an amount you need the current YTD income to be included in the member balance (then yes)
  • have there been contributions or rollovers in to that member account during the year (then yes if there might be an impact on taxable/tax-free proportion in the account)
  • is it a pension account (then yes)

There’s probably more …

As a matter of process, personally I post to distributions to income during the year and then record the distribution receivable.

Thanks there.
It is a partial withdrawal but it is of a significant amount.
I have ensured that the withdrawal taken does not put the member balance into debit when doing end of year.