Self-Managed Superannuation Funds - Types of Contributions

There are many different types of contributions that can be accepted into a self-managed superannuation account. But be sure you know all the rules and regulations that attach to them.
The whole idea of having a self-managed superannuation fund is so that you can save for your retirement; therefore it is of great importance that you know exactly what kind of contributions can go into it. They fall into two broad categories; mandatory contributions and voluntary contributions.

Mandatory contributions are those put in by the employer under industrial agreement or by law. They will include the 9% guarantee that is required by law and also any shortfall components. There may also be contributions added that are linked to an awards programme. These can be accepted at any time, regardless of age or number of work hours.

Voluntary contributions are different because they have more regulations attached. They can include additional contributions from an employer; personal contributions from the employees; contributions from the self-employed; spouse contributions and any other personal contributions. Most of the regulations are age-related. Any contribution can be accepted from those under 65 so long as a tax file number (TFN) is quoted. For members between 65 and 70 years, they must be gainfully employed and the TFN quoted.

Contributions can be accepted by those aged between 70 and 75 years only if they are employed, have quoted their TFN, and up till the 28th day after the end of the month in which the person turned 75.
Mel writes about self managed superannuation funds, interest calculator and other finance topics.