Transferring Benefits into your SMSF

Transferring Funds into your SMSF

When your SMSF is set up, you can request that your retail Super Fund rolls your Superannuation balance over to your SMSF. To do this you’ll need to complete a “Benefit Rollover Request” form. In most cases, you can download the form from your retail fund’s website. If  you can’t download it, you can always phone and ask them to send it to you. Alternatively, you can use a Rollover initiation request for SMSF in a standardised format to request the roll over.

The retail superannuation fund will ask you for your SMSF details and issue a cheque payable to your SMSF. They might also ask for your SMSF ABN (Australian Business Number) and confirmation of the SMSF’s Trustees and Members before rolling your funds over. If you need to send the retail fund this data, send them a copy of your SMSF Trust Deed .

When completing the Benefit Rollover Statement, you may come across a section asking you to provide a SPIN number. If you see this, write “N\A” in this section. SPIN numbers do not apply to SMSFs. A SPIN number is a reference number used between retail super funds for the electronic transfer of money and is short for Superannuation Product Identification Number. Retail Superannuation Funds never send money to SMSFs electronically. They always put your cheque in the post (further details below).

Please remember to keep the Rollover Statement that you receive from the retail fund. This sets out the components of the benefit received. Superannuation Warehouse will ask you for this information at the end of the financial year in order to complete your Member Benefit Statement.

Transferring Funds from an SMSF to a retail Super Fund

You can also send funds as a roll over from your SMSF back to a retail fund. The form you need to fill out and send (from your SMSF to the retail fund) is called a Rollover benefits statement. To download the instructions, click here.

Cheque Deposits

If your Fund has a Macquarie bank account, cheques can be deposited at any NAB branch. For other banks – deposit the cheque at the branch.

Practical considerations

Retail superannuation funds may be reluctant to roll your money out of their Funds. Although the money is legally yours, some Funds make it extremely difficult for you to access it. This is because it earns them a commission; a commission they lose if they roll it over to your SMSF. So don’t be put off if they make you jump through hoops!!

Moreover, it’s no coincidence that you won’t find a single Retail Super Fund that will transfer your money to your SMSF bank account electronically. This is another way of deterring you from moving your money.

If you find it hard to believe that a retail superannuation fund would act in this way, phone any one of them and they’ll confirm it. Putting money into a retail superannuation fund is easy, but taking it out is a very different story – that’s why smart investors insist on controlling their own superannuation funds.

From what you’ve read above, you won’t be surprised to learn that the rollover process can take a few weeks, but, in the long run, it’s well worth it!

For more info relating to transfer benefits and roll over, please watch the video below.

For more info about insurance for Members in your SMSF, please follow this link.

 

FAQs (click on the question to reveal the answer)

Q: How do I confirm whether my SMSF is a regulated Fund?

A: You can confirm the status of your SMSF details on Super Fund Lookup by entering your Fund’s ABN.

Q: How do I confirm whether my SMSF accept contributions from my employer?

A: An SMSF will accept contributions from it’s employers. This is stated in your SMSF Trust Deed, page 16, Clause 19 (If the Trust Deed is issued by Superannuation Warehouse when establishing your SMSF).

Q: How can my employer make contributions to my SMSF

A: The employer can deposit it into your SMSF bank account. You can send them the details of your SMSF bank account, which includes the Account Name, BSB and Account Number.

Q: What do I fill in for the Membership number?

A: If you are the only Member in the Super Fund, your Membership number is 1. If there are 2 Members in the Fund, your Membership number will be 1 or 2.

 

  • Wayne Connolly

    This is so true about the retail funds being reluctant to give funds and also to ignore EFT requests. I even completed the ATO super rollover form which clearly states that the funds are to be EFT’ed and into which accounts yet Telstra Super stilol sent me cheque…this is simply arrogance.

  • Hein Preller

    This should not happen but it does. The longer they hold onto your funds, the more fees they earn. The only thing you can do it to regularly follow up with them.

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