I am auditing a fund where the members agreed to commence an account based pension at 1 July 2022
for the 2023 fin year . both members are over 65 .on the 1 July 2022 a personal concessional contribution was made
into fund .The contributions $27500 were paid out of the retirement phase account together with previously rolled in amounts from accumulation balance as at 1 july 2022 as pensions in 2023 year.
Has the sequence of creating the pension accounts and pension payments as detailed above been correctly accounted and in accord with pension rules
Hi Mike
Yes, the contributions made on 1 July 2002 would be made to an accumulation account and on the same day an account based pension can be commenced with the total accumulation account. The accumulation account would need to allow for the tax impact of the personal concessional contributions.
If I have not answered your query, please let me know.
Thanks
The Auditors Institute