Preserved, unresticted non-preserved and restricted non-preserved contributions

The primary comparison most fund members make when considering superannuation contributions is between concessional contributions and non-concessional contributions. Beyond those two types of contributions are a different sub-category of contributions that have a great effect on your accessibility of super contributions. self-managed superannuation funds and structuring them to assist clients in purchasing direct assets such as investment property, commercial property and shares.Whether concessional or non-concessional, all super contributions are either preserved, unrestricted non-preserved or restricted non-preserved.•    Preserved contributionsThe most common form of a contribution is a preserved contribution. These can only be withdrawn by a fund member either upon retirement or once they have met some extreme condition such as financial hardship or a terminal medical condition.•    Unrestricted non-preservedThe second most common type of a contribution is an unrestricted non-preserved contribution. Once certain conditions are met the fund member is able to withdraw these contributions at any time. Once a member has passed the retirement age and has retired from working, all contributions in the fund become unrestricted non-preserved. This allows the fund member to withdraw them to their own discretion. Additionally, if a fund member undergoes early retirement due to a medical condition then the contributions in their fund become unrestricted non-preserved.•    Restricted non-preservedThese types of contributions are the least common as they were discontinued after the 30th of June 1999. These contributions can only be withdrawn by a member during termination of employment where the employer had contributed to the fund. Eventually they will cease to exist.The distinction between these three types of contributions is imperative to understand. Although, the majority of most fund member's contributions are likely to be preserved, it is important to have a clear understanding of all three of these contributions. this article compares the preserved, unrestricted non-preserved and restricted non-preserved contributions in an individuals superannuation fund.Understanding these types of contributions will have an enormous effect on your ability to withdraw funds. For the majority of individuals this may not be a huge issue, however, there will come a time when withdrawing funds from your superannuation will be required.Advice and careful planning should be sought from a SMSF accountant for careful planning on how you can benefit from these contributions. This allows the fund member to withdraw them to their own discretion. self-managed superannuation funds and structuring them to assist clients in purchasing direct assets such as investment property, commercial property and shares.

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