You have started your own self-managed superannuation fund, but suddenly you aren’t sure if this was the right thing. How do you get out of this type of fund? This is the one question that many people have. They think that managing SMSF is easy and then they realize it was as easy as what they have thought. Now, they need to get out of this fund, and how do you really get to do that?
The reasons why you can’t continue with the SMSF
There are many reasons why people can’t continue with their SMSF, and they need to get out if it as soon as possible. Most of the time you didn’t realize how much work it is to manage it yourself, and you don’t have the time anymore.
You also might not understand all the rules and regulations, and therefore you are making huge mistakes and you want to quit before you lose any more money.
Notifying the OTA
You realized that you can’t do the self-managed superannuation fund anymore and you need to quit. The first thing that you should do is to notify the OTA within 28 days. It is important to make sure that you don’t notify them later than the 28 days. You can get some penalties for not notifying them of time.
You should also make sure that you know what the reason is for not continuing with the SMSF. This is because the OTA might ask why you are considering quitting.
Make sure that the fund has no assets left
You can’t get out of your SMSF if there are still assets left in the fund. You need to make sure that all the assets are withdrawn from the account and that there isn’t any property left in the name of the fund.
You can rename the property or you can sell it to other SMSF people. The money can be transferred to another account that isn’t associated with the SMSF account. If you are leaving any assets in the fund, you might lose that money, or you might even not get too close the fund completely.
Getting a final audit
The last thing that you need to do, is to get a final audit of the self-managed superannuation fund. Without your last audit, you will not be able to close that book finally. This might be a daunting task to get a final audit and to make sure that everything is under control.
However, if you have done your last audit, you are done with your SMSF, and you can go on normally.
The SMSF can be really beneficial if you know how to do it correctly. However, there are some people that are not getting it right and that want to get out of this fund. This is possible, but it might be a longer process than what you have hoped for. With all these steps done, you will know for sure that you are done with the SMSF and that you can now use brokers for your investments again.