Q: I am 60 years old, still working and planning to close my self-managed super fund (SMSF). What will happen to my super balance after I close it?
A: So this is putting the horse before the cart, Erlita. You certainly won’t be able to actually close or what we call wind up your SMSF until all the member’s benefits which are held within the fund have actually been dealt with.
What I mean by that is you can’t wind up the fund until you’ve either accessed your money, withdrawn it from super. Of course, you’d have to be eligible to do that. Now, I think you mentioned before you’re 60 and still working. So arguably, you probably wouldn’t be able to do option one, which is to withdraw your money from super. So, you’re probably going to have to roll it over to another complying super fund.
Now, remember, because you’re in an SMSF, these rollovers between funds, so between your SMSF and another fund, will have to be done using what we call the SuperStream system, which I’m sure your accountant or your fund administrator works with and deals with for you. But until one of those two things occurs, withdrawing benefits from the fund, if eligible, or rollover, you can’t actually close or wind up the fund. So, just keep in mind that that won’t happen until all benefits have actually been paid out of the fund.
Now, winding up an SMSF is a simple process if you do it right. If you don’t do it right, you can catch yourself out a bit here. So, I’d suggest you have a look at the article there which was released last year on how to wind up an SMSF, like a step-by-step guide. And if you do use an administrator, get them to assist you with that wind up process.