TaxBanter for February 2014 continues to remind Trustees of Self Managed Superannuation Funds (SMSF) that they are following the rules surrounding running a SMSF to ensure they are compliant with all the regulating bodies involved. The results of actions that are not compliant with any of the regulating bodies can be devastating to the SMSF, the trustee and the member(s).
An important reminder about the conditions of release:
Trustees should never pay out funds to a member without a condition of release. The rules surrounding what defines a condition of release include:
- Retirement after the member attains preservation age. Retirement must mean a clear intention to not be employed.
Severe financial hardship. It is important the Trustees seek advice to understand this definition as it relates to SMSF.
Compassionate grounds. It is important the Trustees seek advice to understand this definition as it relates to SMSF.
Attaining preservation age. A transition to retirement can occur at this point as long as there is clear documentation of an income stream, pension or annuity to be paid to the Member.
If you have any questions about your Trustee obligations please contact your Client Manager to discuss this further.
This article was written by Cindy Robertson, a Senior Accountant at our Burleigh Office. Cindy is a CPA with years of experience in Public Practise Accounting. Moving to the Gold Coast has allowed Cindy to spend her spare time embracing the outdoors as an avid runner and cyclist.
To contact Cindy or any of our Accountants please click here...