RBL planning involves ongoing management of each member's situation both in accumulation and retirement phases. Practitioners should ensure they are aware of current legislation, industry practices and planning strategies that seek to optimise each client's position. The 2004 Federal Budget has impacted reserving strategies for all SMSFs post-11 May 2004. This paper reviews some practical examples and examines:
- lowering of the excess benefits tax from 47% to 38% and its impact on various pension strategies, eg. the two allocated pension strategy may no longer be appropriate
- excess benefit strategies - how to minimise the excess strategies to manage RBLs during accumulation - reserving & investment allocations, after retirement - the benefit strategies, and upon death - special issues that arise
- dealing with surcharge issues with reserves
- the 2004 Federal Budget impact on reserving strategies
- the taxation and surcharge issues when distributing reserve.
- lowering of the excess benefits tax from 47% to 38% and its impact on various pension strategies, eg. the two allocated pension strategy may no longer be appropriate
- excess benefit strategies - how to minimise the excess strategies to manage RBLs during accumulation - reserving & investment allocations, after retirement - the benefit strategies, and upon death - special issues that arise
- dealing with surcharge issues with reserves
- the 2004 Federal Budget impact on reserving strategies
- the taxation and surcharge issues when distributing reserve.