The tips for rolling over to a self managed super fund

June 2016

You may wish to roll-over (transfer) the money you have in superannuation to another fund. For example, you may have just established a self-managed superannuation fund (SMSF) with the aim of commencing an income stream or for investment purposes, retirement and you would like to move all of your super benefits to that fund. This may take some time, but it is worthwhile, as it will offer you all the control and flexibility that SMSFs provide.

If you don’t already have an SMSF, the first thing you need to do is establish one. Usually this can be done with the help of your SMSF professional, such as your accountant or financial planner, who should be accredited or licensed to provide SMSF advice from 1 July 2016. Your SMSF professional will get you started with an SMSF that will consist of rules (most of which are included in the fund’s trust deed – the document which sets out the rules for operating the fund), accounting records and registrations for income tax and superannuation purposes. Once this has been completed you will be ready to start the roll-over of your superannuation benefit to your SMSF.

The next step should be to contact the superannuation fund that currently holds your super benefits to see what they require to release your benefits and roll it over to your SMSF. This will usually include the ABN for your SMSF, bank account details and proof that the SMSF is a fund regulated by the ATO. A form is available from the ATO website for the transfer of your superannuation benefit to your SMSF. This should be given to the trustees of the super fund that will roll-over the benefit to your SMSF.

Once the fund is satisfied that the roll-over of your super benefits is genuine, the fund will transfer the money either by cheque or electronic transfer and provide a Rollover Benefits Statement (RBS) concerning the roll-over to your SMSF. The information in the RBS will include your membership details, the amount of the benefit, taxation information and how much of your super benefit is required to be preserved.

Once your super benefits have been rolled over to your SMSF, you can commence investing the money received as set out in the fund’s investment strategy (this sets out your investment goals and the types of investment your SMSF can make) to help you build a healthy nest egg for the benefit of members or their dependants.

 

Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.