question archive Which of the following statements is LEAST consistent with the lecture content on Account Based Pensions (ABP): A
Which of the following statements is LEAST consistent with the lecture content on Account Based Pensions (ABP): A
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Which of the following statements is LEAST consistent with the lecture content on Account Based Pensions (ABP):
A. They allow someone to draw a regular income from their superannuation savings after they have reached their preservation age and permanently retired.
B. The concessional tax allowances for ABPs are subject to the Transfer Balance Cap.
C. If someone is aged over 60, the income drawn from the ABP is normally tax-free and investment earnings are also normally tax-free as well.
D. Only a regular income can be drawn from superannuation savings in an ABP. Lump sum withdrawals are not allowed.
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answer:
A. An account based pension lets you take your superannuation savings as regular payments, when you retire.
B. If you exceed the transfer balance cap, you will be liable to pay tax on the excess transfer balance earnings.
C. The income form ABP is generally tax free amd investment earnings are also tax free.
D. Lumpsum amounts can also be withdrawn form ABP. There is no restriction.
The statement D is least consistent.
