With the expanded contribution eligibility rules kicking in after July 1 for anyone under 75, you might want to consider your options more closely.
for pension members is what to do with any small accumulation account that exists in the SMSF at June 30.
If you are unable to take advantage of the new contribution eligibility rules, the most sensible option is to continue to convert any remaining accumulation account at year-end to a pension wherever possible. In most situations when the SMSF financial accounts are prepared, your accountant will, where possible, have had you complete the relevant paperwork that would have stopped your existing pension, added the accumulation account that had built up during that year, and then started a new pension at the start of the next financial year The benefit of this approach meant you then had a higher total pension balance to maximise the tax-free earnings for the next financial year.
In this situation you might be better off starting a stand-alone pension with this non-concessional contribution at the time the contribution is made if your existing pension has a relatively low tax-free component, and you want to start a 100 per cent tax-free pension. This also means that any accumulation account that is subsequently built up during the year is then not added to this non-concessional contribution, and you can start a 100 per cent tax-free pension.
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