A Self Managed Super Fund is a beneficial investment option for your retirement. You can have a query to setup an account for such a fund when you decide having an SMSF is a right option for you. Here are five useful steps for your help:
1. Build a Trust
First of all, you need to set up a trust for setting up a Self Managed Super Fund and registering it with the Australia Tax Office. For establishing a trust, you should have assets, trustees, intention to create a trust, and identifiable beneficiaries.
2. Attain The Trust Deed
You must have a well-drafted trust deed, which sets out the terms & conditions for the operation of you super fund. In the preparation of the trust deed, you can take the support of a competent, like SMSF Accountants Sydney and a legal practitioner. After the completion, ask your trustees follow the set rules while executing their tasks.
3. Sign a Declaration
Whether you are a director or a trustee of a Self Managed Super Fund, you need to sign a declaration, stating that you have comprehended your duties, obligations, and responsibilities as a director or trustee of a super fund. You must get an approval for your declaration from the ATO within 21 days of being a trustee or director.
Your Responsibilities And Obligations May Include:
- Honest acting in all matters
- Exercise the skill, degree, and diligence of a common careful person
- Best works in the interests of all members
- Separation between your trust and personal accounts and assets
- No work to obstruct members from performing their functions and duties
- Formation and implementation of investment strategies
- Responsibility to manage reserves
4. Lodge An Election With The Regulator
To have a regulation of the ATO, your trustees need to lodge an election within sixty days of the setup of a self managed fund. With this election, you can convince the Australia Tax Office that your fund will be unrestricted to concessional taxation treatment and the pertinent superannuation legislation’s needs. You will not be eligible to avail taxation concession for your fund if you do not lodge an election notice with the ATO.
5. Open a Cash Account
As a director or trustee of your super fund, you must have a cash account, which will enable you to accept contributions, earnings, and rollovers from investments. You can use this account to pay expenses, like accounting fees, yearly supervisory levy, member benefits, and taxation liabilities.
Opening a Self Managed Super Fund account follows a process, which includes trust creation, trust deed drafting, declaration signing, lodging an election and opening a cash account. Getting in touch with SMSF accountants Sydney can be beneficial if you need a professional support. Such an accountant can help you set the account easily and manage your super fund in the future.