Setting up an SMSF is an important decision and has several considerations BEFORE you decide an SMSF is for you, or have had discussions with your financial or tax agent advisor and conclude an SMSF may be a suitable part of your strategy for wealth creation and the retirement you want.
Preparation – what is involved and suitability
- Consider options, seek advice, your time, skills
- What Trustee Type and Eligibility (over 18, no legal disability, not disqualified, no convictions) individuals, corporate (preferred and more stable for succession planning)
- Member numbers – single, multiple
- Trust Deed, order/have written
- Slides – our FREE slides to explain more – SMSF Roadmap Overview
2. Starting the SMSF
- Commence the SMSF by executing the Trust Deed
- Application 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 find out why this is an important consideration)
- Organise Employer to contribute to your new SMSF bank account – Complete Standard Choice form, from ATO
- Investment Strategy decided and write – Reg 4.09.
3. Operate SMSF – each year from the start
- Manage 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, mail, banking – S35B
- (When later required) – Pensions (benefits) min. 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.
Call 0407 361 596