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Making contribution to SMSF & industry superfund at the same time

Discussion in 'Superannuation, SMSF & Personal Insurance' started by smsf.beginner, 21st Feb, 2014.

  1. smsf.beginner

    smsf.beginner New Member

    Joined:
    21st Feb, 2014
    Posts:
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    Location:
    Melbourne
    Hi All,

    I want to setup SMSF. When my SMSF is established, I only want to rollover portion of my super to SMSF and leave the rest with industry superfund. Is it possible or do I have to rollover all my super to SMSF?

    Also, it is possible to make contribution to SMSF and industry superfund at the same time so I can ask my employer to allocate 50% of my super to SMSF and the rest to industry superfund?

    Cheers.
     
  2. GregR

    GregR Reid Consultants

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    13th Jul, 2009
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    Location:
    Berwick Vic
    Not sure why you want to run up the additional cost of a SMSF and still use an industry fund. It may be for insurance reasons but suggest you check the numbers first to make sure it makes sense running two sets of fees.

    There is no reason you cannot roll over part of your existing super funds into a new super account as far as I know as long as the industry fund agrees to roll over part.

    If your employer is happy to contribute to two funds, again it is possible. Alternatively if you salary sacrifice into super, use the industry fund for the SGC and the SMSF for the personal contribution, or vis versa. A restriction may be an enterprise agreement if it applies to your work place.

    Greg
     
  3. Jimmy007

    Jimmy007 Member

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    28th Aug, 2013
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    Location:
    Brisbane
    Yes agree with Greg.

    Not sure your employer would be stoked with the partial contributions, but probably doable.

    The other option would be to contribute 100% to Industry fund and then do an annual or bi-annual roll over? but as Greg mentioned not exactly cost effective with fees etc? and roll overs can be a pain in the ass. (industry funds Looooove transferring funds to SMSFs? not)

    Bets of luck!
     
    Last edited by a moderator: 27th Sep, 2016
  4. Blueeye

    Blueeye Active Member

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    Location:
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    Not sure why you'd willingly have 2 super funds but whatever floats your boat. I don't see any dramas with it being possible.
     
  5. redwood

    redwood Member

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    9th Nov, 2013
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    Location:
    Melbourne
    The others make the point of running two funds however, whatever is best for you. Some of my clients do it, however, I make it clear that its double the burden and consider the burden in the long term.

    Personally, I have it all through my SMSF....

    Cheers, Ivan
     
  6. Jimmy007

    Jimmy007 Member

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    28th Aug, 2013
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    Location:
    Brisbane
    Hey smsf.beginner did you make a decision about running two funds or the one..? I'd be interested to hear which way you went and if it is working out for you...?
     
    Last edited by a moderator: 27th Sep, 2016
  7. davewa

    davewa Active Member

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    22nd May, 2011
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    Location:
    Sydney, NSW
    Hi smsf.beginner,

    I did what you ask in the first part of your letter when I set up our SMSF in 2008. I had to leave minimum $1000 in my industry fund (Unisuper) to keep it open.

    After that all my work super went into Unisuper because that was the condition of my workplace agreement.
    Regards
     
  8. Christianrenel

    Christianrenel Active Member

    Joined:
    13th Jan, 2015
    Posts:
    31
    Location:
    Sydney
    Making Contributions

    Hi SMSF.beginner,

    You are able to make employeer contributions to both superannuation funds. You may find it difficult to track the contributions going into the superannuation.

    If your are keeping the Industry fund for insurance purposes, I recommend checking out another insurance provider because industry fund insurance is not that cheap anymore. Now and the coming years industry funds have had alot of insurance claims for Total Permanment Disability, and this will increae into the future. New members will be paying this difference onthis ongoing claims.


    Kind Regards


    Christianrenel
     
    Last edited by a moderator: 27th Sep, 2016