Our Step by Step Plan to transition XX Super Fund to Pension Phase.
Myself and my wife are trustees and equal 50/50 beneficiaries of a SMSF called XX Super Fund. I am 65 and my wife is 66 years old.
The fund holds the following assets:
· two residential properties that are rented and return rent to the fund. Both properties titles are in our names on behalf of XX Super fund
· a portfolio of Australian shares held in a Chess registered Commsec account in the XX Super fund
· Cash held in Commonwealth bank account in the name of XX Super Fund
The total of assets held are less than $2m.
Tinman is currently in accumulation phase, and we plan to transition all assets held by XX Super fund to a pension fund on 1st of July 2026.
We will complete the following steps:
1. We will both individually write to XX super fund requesting that 100% of our share of the fund are transitioned to pension phase.
2. As trustees we will record in minutes receiving the written notice, and our agreement with the transition.
3. We will organise valuation of the two residential properties at 30/6/2026.
4. We will document the value of shares and cash held at 30/6/2026 using the value shown end of day on the 30/6/2026 on commsec and commbank.
5. We will complete a summary of the value of all assets on 30/6/2026.
6. We will calculate our proportional tax components using the tax components provided in our 25/26 audited annual accounts at 30/6/2026.
7. We will complete a TBAR form and submit this to ATO after 1/7/2026 that outlines the value of all assets moved to pension phase.
8. During the 26/27 financial year XX super fund will pay each beneficiary 5% of their share of the assets transferred to the pension fund on 1/7/2026. We will keep records of payment to each member of the pension fund.
9. We will provide all details to Auditor who complete the annual audit for XX Super Fund.
This will mean 100% of SMSF funds will transition to pension phase on 1st of July 2026.
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