Join our investing community

Working after condition of realease

Discussion in 'Superannuation, SMSF & Personal Insurance' started by DrJohns, 9th Jun, 2011.

  1. DrJohns

    DrJohns Member

    Joined:
    18th Jan, 2010
    Posts:
    22
    Location:
    Adelaide, SA
    You retire, intending that it is permanent, and access most of your super funds at that time.

    If you sebsequently return to work, are you still able to access the rest of your super funds having previously met a condition of release, or do you no longer meet the condition (ignoring TRIS strategies)?

    Further to that, what if you retire but don't access any super at that time then decide to go into business, have you missed the opportunity to take advantage of a condition of release?
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi DrJohns,

    You may want to discuss this with your FPA registered Financial Planner to discuss Conditions of Release in more detail.

    Cheers,

    Dan
     
  3. funkandjunk

    funkandjunk Member

    Joined:
    28th Jun, 2010
    Posts:
    16
    Location:
    Sydney
    Conditions of release

    Hi

    If you informed the fund at the point of retiring, then they would have made all your funds unrestricted non preserved. Those funds remain unrestricted non - preserved regardless of future work status. Of course any earnings would be preserved.

    However if you didn't tell the fund at the point of retiring initially and go back to work you probably will not be able to access your funds now as you presumably cannot satisfy retirement condition of release (as you are currently working).

    Hope this assists.
     
  4. DrJohns

    DrJohns Member

    Joined:
    18th Jan, 2010
    Posts:
    22
    Location:
    Adelaide, SA
    Thanks for your reply.

    It wasn't in relation to me but was in relation to a SMSF. AsxBroker should not waste his time giving answers like he does.

    So as I now I understand it, if you retire all your funds become Unrestricted-Non-Preserved but if you return to work, for more than 10 hours a week, then future contributions from that point are preserved until a future condition of release is met.
     
  5. funkandjunk

    funkandjunk Member

    Joined:
    28th Jun, 2010
    Posts:
    16
    Location:
    Sydney
    Conditions of release

    Hi Dr Johns,

    I agree with your interpretation. Since the initial retirement day,any earningsand subsequent contributions should be classified as preserved status.

    If the member of the SMSF now wants to access those preserved funds, then that member must meet a "fresh" condition of release. That is, cannot rely on theprevious condition of release to access the current preserved funds.

    Please note that if one is considering retirement condition of release, depending on the age of the member, different definition of retirement apply.

    For example, if a particular member is over the of 60, retirement is satisfied by simply ceasing a painful employment arrangement, with no regard given to future work intentions or indeed future work status.

    I hope this assists with understanding of the rules.

    Regards
    FNJ

    Of course at the age of 65 an automatic condition of release is met regardless of work status.
     
  6. funkandjunk

    funkandjunk Member

    Joined:
    28th Jun, 2010
    Posts:
    16
    Location:
    Sydney
    Hi

    Most employment arrangements are probably painful bit I meant gainful.

    Sorry funny spell check.
     
  7. DrJohns

    DrJohns Member

    Joined:
    18th Jan, 2010
    Posts:
    22
    Location:
    Adelaide, SA
    Thanks for the reply - and the subsequent clarification :)