Superannuation Accounts
Superannuation Accounts
The Super section allows you to record the client's super accounts including both accumulation and pension accounts. Specific information in relation to SMSFs is included under the SMSF tab.
The Super section is made up of a three panels:
- Existing Super - Here all super accounts within the scenario are recorded, along with a CREATE NEW SUPER button to add a new super account. Super accounts can be opened and edited by clicking on the relevant row; accounts can also be deleted by using the garbage bin icon to the right of the row.
- Year to Date Contributions - This panel records current financial year to date concessional and lump sum caps relevant to client and partner.
- Bring Forward Contribution Limits - This panel records existing bring forward non-concessional contributions for client and partner.
When you add a new member, Prospera automatically creates a new SGC superannuation fund and Pension fund for the member, and links them so that at retirement, the superannuation will automatically roll over into the pension account. All you will need to do is add in the relevant account balances, unless you wish to add another type of superannuation fund, such as a Defined Benefit fund.
Adding a New Super Account
To add a new super account click the CREATE NEW SUPER button.
Select the type of super fund you wish to create from the dropdown menu.
Super Fund types include:
- SGC (an account where Superannuation Guarantee Contributions will be paid into)
- Pension (a pension account, for use in retirement, or Transition to Retirement phase)
- Topup (an account the client has which does not receive Superannuation Guarantee Contributions)
- Stuck (an account the client has which they have no ability to roll out of)
- SSS (State Super NSW, a government fund with specific rules)
- Defined Benefit (Superannuation benefit is not calculated using contributions and growth, it is calculated using a specific formula)
After selecting an account click NEXT.
The Add Account - Account Details screen is then displayed.
Ensure all fields with REQ next to the title are completed.
Click ADD when completed to save the details.
Helpful Hints:
1. Account Name - Add the name of the Fund / provider.
2. Owner - Which member owns the fund?
3. Associated SMSF - Only use if you are linking an SMSF to the member account.
If you have created an SMSF entity on the SMSF page in Prospera, the SMSF will appear in the dropdown list to link to the Member's super account here.
4. Co-contrib Account - To nominate this member account to receive the co-contribution, select "Yes" here.
5. Annual Fee - Add annual fee if you would like the projected superannuation balance reduced by a fee.
6. Net Rate of Return - Add the long term projected return for the fund, based on the member's risk profile.
7. Rollover at Retirement - Select "YES" and the super will automatically roll to pension phase at retirement.
If you select "NO", you will need to manually rollover the superannuation fund when you want it to happen. To do this, you would scroll down to the 'Rollover to Pension Accounts' section within the superannuation fund and enter the date and amount you wish to roll over.
8. Process Order - If there are multiple funds, select the order of roll over (1, 2, 3, etc) - or leave as zero.
9. Default Pension Account - Link the Pension fund (from the dropdown menu) that the super will roll into at retirement.
If you are using the accounts that were automatically created, you won't need to do anything here, unless you want to change them.
10. Tracked Account - There is no need to enter anything here until you are ready to "IMPLEMENT" the client for Track to Plan reporting.
11. Taxfree Component - Add the Taxfree component of the superannuation benefit.
12. Taxed Element - Add the Taxed component of the superannuation benefit.
13. Untaxed Element - Add the Untaxed component of the superannuation benefit.
14 - 16. Downsizer Contribution
If you are modelling a Home Downsizer Contribution for the client, enter the date, amount and funding account for the contribution here.
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