06 Mar What happens when you withdraw more than the maximum 10% (transition to retirement pension)?
What happens if a member withdraws more than the 10% maximum allowed with a transition to retirement pension?
1) the income stream ceases
2) the super fund returns to accumulation phase
3) the super fund therefore loses it’s exempt pension status and it’s income is taxed at 15%
4) the withdrawal is basically seen as, for lack of a better word, an “illegal” withdrawal from the fund and included in the individuals income tax return and is taxed at marginal tax rates.
OUCH!! Watch those limits people 😉 
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