The end of the financial year is upon us and there are some critical things to remember if you are the Trustee of a Self Managed Superannuation Fund:
1. Have your members made all of their desired contributions to superannuation yet?
If not, you must make the contribution before 30 June and be mindful of electronic transaction delays. See below for your contribution limits:
Remember to look at your last three years of contribution history to see if you have triggered your 2 year bring forward provisions. This allows you to contribute no more than $450,000 over a three year period. If you have triggered these provisions in earlier years, you may not be eligible to contribute $150,000 in Non-Concessional contributions this year. Talk to your advisor before making the contribution.
2. Have you satisfied the minimum pension payments for members in Pension Phase?
Remember, if a member is in pension phase and the minimum pension payment is not paid out of the fund before 30 June 2011, the pension account runs the risk of losing the tax concessions associated with it. This would mean that all earnings for the year will be taxed at 15%, instead of being received tax free.
See below for the Pension Percentage Factors relating to your pension:
* This reflects the 50% reduction in minimum annual payments for Account Based Pensions, Allocated and Market Linked Pensions and Annuities.
