Knowing how to set up a Self-Managed super Fund (SMSF) and operate ongoing is a serious financial decision and requires several considerations BEFORE you decide if an SMSF is for you.
An important step is to have a discussion with your financial and/or tax advisor to determine if an SMSF is a suitable part of your strategy for wealth creation and the retirement you want.
1. Plan and preparation – knowing what is involved and your suitability
- Consider other options, seek advice, your time, skills available
- What Trustee Type and Eligibility (over 18, no legal disability, not disqualified, no convictions) individuals, corporate (preferred and more stable for succession planning, also often required by lenders if borrowing)
- Member numbers – single, multiple (up to 4)
- Trust Deed, order/have written
- Attend a FREE webinar – Self-Managed Super Fund Roadmap
2. Starting the SMSF
- Commence the SMSF by executing the Trust Deed
- Apply for ABN, TFN and Regulation by ATO
- ATO Trustee Declarations signed and kept 10 years S104A
- Bank Account opened in name of SMSF – MUST segregate super money from personal
- Roll-in monies – request from your current super funds, and/or contribute own monies and assets as allowed Reg 7.04
- Decide if you will keep insurance in your current commercial super fund (leaving a small balance there to maintain insurance cover), or get quotes to pay from your SMSF and roll the full super over (call us to hear from our advisors why this is an important consideration)
- Organise your Employer to contribute/pay your regular super guarantee (SG) to your new SMSF bank account – by Completing Standard Choice form, from ATO
- Investment Strategy decide and have written – Reg 4.09.
3. Operate SMSF – each year from the start
- Manage/follow up contributions from employer or personal, and roll-ins from Super Funds
- Invest monies as per your Investment Strategy Reg 4.09
- Life & TPD Insurance Requirements can be paid by SMSF if required
- Maintain Record keeping, accounting, mail, banking – S35B
- (When later required) – Set up Pensions (benefits) note there is a minimum payment, documented, application, minutes, actuary certificate (if applic), pension payments – Sub Reg 1.06 (9A)
- Further Compliance tasks, meeting minutes for major decisions eg change in investment strategy, keep 10 yrs – S103
- Organise annual return, audit at year end – S35B, S35C(2)(d).
Got questions? If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and also get your FREE Expert Guide – Self-Managed Super and You – top right hand side above.
If you have any questions, why not give us a call – it’s FREE also!
No obligation. 0407 361 596, Paul.