Self-managed super funds are a type of pension fund in which you (and up to 3 other fund members) are also the trustee of the fund and therefore have complete control over its operations.
Given the growing popularity of these funds, this article is intended to provide prospective trustees with a simple overview of how accrued annuities work and what is associated with them. If you also need information about the SMSF tax return, you can navigate to this site.
Image Source: Google
1. Taking Responsibility – Before creating a new SMSF, you must receive information (via an ATO brochure) about your responsibilities as trustee of the SMSF. If you think the responsibility is too high for you, stop setting the SMSF.
2. Setup – Once you have chosen SMSF and are happy to take on the role of trustee and everyone involved, the next step is to set up your new super fund. This involves several elements including appointing a trustee, obtaining a trust deed for the fund, and filling out an ATO application form to register as a supervisor.
3. Create a separate bank account – the important thing is that all funds from SMSF are kept separate from members' money.
4. Accepting Deposits and Tipping – Once your bank account is set up, you are now ready to receive your super money tips from the previous super funds. You can also contribute to your fund, although you should keep in mind the different types of contributions and the rules that go with them.