When benefits can be paid 

The rules for paying benefits from an SMSF are the same as for any other super fund, but the trustees have a responsibility to make sure that the form of the withdrawal is allowed and that any tax payable is deducted and forwarded to the ATO.

If an amount is paid as a lump sum to a member under age 60, say for financial hardship grounds, tax may need to be calculated and deducted. This is remitted to the ATO and a PAYG payment summary is provided to the member. 

When pension payments or lump sum withdrawals are made, the member account balance details are adjusted to record the withdrawal or rollover. 

If allowed under the trust deed, a member may receive lump sum withdrawals as an in-specie transfer instead of cash payments. 

When moving investments between different ownership structures - that is, from your super fund to your personal name or to a trust - the investment can either be sold down to cash with the proceeds transferred, or the transfer can be made in-specie. In-specie is a Latin phrase meaning in its actual form, so a transfer in-specie is a transfer of an asset in its present form. 

The ability of an SMSF to make payment of superannuation benefits in specie does not extend to payment of pension benefits. These must be made in cash.