Individuals who plan to transfer their existing super from an industry fund into an SMSF needn’t worry about going over their superannuation contribution limit.
Transferring these funds, also known as ‘rolling over’, is not considered to be a super contribution since the money is already somewhere in Australia’s superannuation system. It also does not count towards an individual’s non-concessional (after-tax) contribution of $180,000 a year (or $540,000 if using the three-year averaging provision).
Individuals can have multiple super accounts including an SMSF. However, when they transfer money from their industry fund, it is important to ensure that doing so will not forgo benefits such as cheap life and TPD (total and permanent disability) insurance.
A popular strategy to avoid having to sacrifice these benefits is to leave a minimum $5000 balance in the industry fund to keep the life and TPD policy. Industry funds will often require individuals to pay their guarantee monies into that account, however, they can transfer that out at a time that is most convenient.