What is the minimum and maximum age to start a self managed super fund?

You can set up a self-managed super fund (SMSF or DIY fund) at any age, but individuals are not permitted to make super contributions beyond the age of 74. You can however rollover (transfer) a current super benefit after the age of 74.

If you wish to make further contributions to the SMSF between the age of 65-74, then you must satisfy a work test: working 40 hours in one 30-day period in the financial year in which you intend to contribute.

An individual under the age of 18 can be a member of a SMSF, but he can’t be a trustee. Trustees of super funds must be 18 years of age or over. If under 18 parent or guardian can be a trustee for the member.

The annual non-concessional (after-tax) contributions cap is $150,000 a year (for the 2010/2011 year, and for the 2011/2012 year), although Australians under the age of 65 have the opportunity to bring forward 2 years’ worth of non-concessional contributions.

The bring-forward rule means that it is possible to make up to $450,000 (for the 2010/2011 year) in non-concessional contributions in a single financial year, or, say, $300,000 in the first year and the balance of $150,000 over the following 2 years. Once you contribute more than $150,000 in a financial year, you automatically trigger the bring-forward rules for the following 2 years.

If you’re aged 65 or over, however, the bring-forward rule is not available. The maximum an individual aged 65 or over can contribute is $150,000 a year (for the 2010/2011 year, and for the 2011/2012 year) in a single financial year, and they must also satisfy a work test. If a person is aged 65 years or over and exceeds the $150,000 non-concessional cap, then the excess contributions are subject to a whopping 46.5% penalty tax.

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Self-Managed Superannuation Service Providers in Australia. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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