It is possible to withdrawal a lump sum from your SMSF, these are the most common circumstances for when you are able to take one:

  • Any unrestricted non-preserved amounts can be withdrawn as a lump sum any time.
  • If you have met a condition of release, such as met preservation age and are fully retired, you can take a lump sum up to 100% of your total benefits.
  • You may be able to take a lump sum due to permanent/temporary incapacity
  • You may be able to take a lump sum due to severe financial hardship.
  • For further information refer to the ATO’s Withdrawing your super and paying tax information.

If you are under 60 years old and withdraw a lump sum, the taxable portion of the lump sum payment will be taxable income. The trustee may also be required to withhold tax from the payment.

Documentation requirements:

  • A member will need to request the payment of a lump sum from the SMSF’s trustee in writing.
  • A payment summary may have to be lodged with the ATO if the member is under 60 years old.