Sometimes a self-managed super fund (SMSF) isn’t for you. While that is ok, getting out of a SMSF can be a tricky and complicated process. Before starting down this path, you need to look at the reasons for leaving and question if they are valid. Some reasons for moving on from a SMSF are:
- Benefits are outweighed by the time and effort needed to maintain.
- Not enough funds in the SMSF to cover ongoing costs.
Or in cases of a group SMSF:
- Trustees find they don’t have the time, resources, interest or expertise to run the SMSF anymore.
- Change in the relationship between one or more members.
- All members have moved to another fund or died.
- The fund has paid the members all of their retirement savings.
- One or more of the members have relocated overseas.
Every individual involved in a SMSF is responsible for their part. No decision can be made on their behalf or outsourced to another member or industry professional. Once deciding to leave your SMSF, you must approach carefully to avoid penalties and damages or disruptions to the remaining member funds. To successfully remove yourself you will need to:
- Notify the ATO within 28 days
- Remove all assets from the fund, whether paid out or transferred to a new account, leaving it empty
- Have a final audit of your fund
- Complete your reporting