Transition of Retirement Income Streams
When an SMSF member decides to transition to a retirement income stream (TRIS), it’s imperative to know the legislation and correct procedures.
Commencing a TRIS
Steps to commencing a TRIS as stated on the ATO website:
- Establish the amount of benefits, assets and liabilities a member has in their SMSF;
- determine the amount of each preservation class of benefits the member has;
- if the member commences a TRIS with an amount less than their total super benefits, you can allocate the preservation classes of the member's benefits to the TRIS; and
- upon commencing to pay a TRIS, you must determine the amount of the tax-free and taxable components of the separate interest.