Transition to Retirement / Roll Super to Pension
To model a Transition to Retirement Strategy, you will need to do three things:
Step 1 - Rollover the amount of superannuation you wish to transfer to Pension phaseStep 2 - Set the amount of pension payment requiredStep 3 - Include additional superannuation contributions (if applicable for your recommended strategy)
Step 1 - Rollover Superannuation to Pension phase
1. Select 'Super' from the left-side menu.
2. Open the relevant superannuation fund and scroll down to the section headed 'Rollover to Pension Accounts'.
3. Click 'ADD' and enter the date you want the rollover to happen, the amount of the rollover, and the Pension Fund.
4. Click 'UPDATE' to save the record.
Step 2 - Set the Pension Payment
1. Select 'Super' from the left-side menu.
2. Open the relevant pension fund for the client.
3. Go to the "TTR Pension Rate" section, and type in the percentage TTR income required (between 4% and 10% of the pension balance).
4. Click 'UPDATE' to save the record.
Step 3 - Include additional superannuation contributions (if applicable for your recommended strategy)
If part of the TTR strategy you are recommending involves making additional contributions into super, you can do this by either adding salary sacrifice contributions via the client's income on the Income screen, OR by adding non-concessional contributions via the client's super fund.
1. Select 'Income' from the left-side menu.
2. Open the client's salary income.
3. Scroll down to see further data entry fields 'Associated Super Contributions (taxed in fund)'.
4. Enter the salary sacrifice contributions as follows:
(a) Salary Sacrifice (a specified amount)* Select "Salary Sacrifice" from the dropdown menu* Enter either the amount per annum, OR the percentage of salary per annum* Set the applicable start and end date for the salary sacrifice contributions* Select the Fund that the contributions will be paid into* Click UPDATE to save the data entry
(b) Salary Sacrifice - Max This Year CapThis setting allows you to maximise the salary sacrifice contributions up to the maximum concessional cap in the applicable years* Select "Salary Sacrifice - Max This Year Cap" from the dropdown menu* DO NOT set an amount or a percentage (Prospera will calculate that for you)* Set the applicable start and end dates for the contributions* Select the Fund that the contributions will be paid into* Click UPDATE to save the data entry(c) Salary Sacrifice - Max Available CapThis setting allows you to maximise the concessional contributions, utilising any unused contributions carried forward* Select "Salary Sacrifice - Max Available Cap" from the dropdown menu* DO NOT set an amount or a percentage (Prospera will calculate that for you)* Set the applicable start and end dates for the contributions* Select the Fund that the contributions will be paid into* Click UPDATE to save the data entry
OR
To make additional non-concessional contributions:
1. Select 'Super' from the left-side menu.
2. Open the client's superannuation fund.
3. Scroll down to the 'Contributions (Funding from Expenses)" section.
4. Click the ADD button under the either the Regular or Lump Sum Contributions, which will add an additional contribution field
3. Select the appropriate date for the contributions (a start and end date in the case of a regular contribution).
4. Select the Contribution type:
- Non-Concessional - after-tax contribution (not tax deductible), from cash flow
- Max Out Concessional Only - a tax deductible contribution, from cash flow, which contributes the lesser of:
- The contribution amount entered; OR- Sufficient contributions to reach the applicable concessional cap ONLY(even if the amount you enter is more than the amount required to reach the cap)
- Nominated Amount from Concessional First - a contribution, from cash flow, which may be partly tax deductible and partly not tax deductible
The amount required to reach the Concessional Cap will be contributed first, and the balance of the contribution will be contributed as a non-concessional contribution.
5. Set the Funding Account - which should be the Surplus Account.
6. Click UPDATE to save the contribution.
"Keep?", at the far right of the data entry row, simply means that you want to keep the entry, when set to "Yes".
If you wish to delete an entry you have already made, simply select "No" from the drop-down menu here, and click UPDATE.
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