What Are The Benefits Of A Self-Managed Super Fund For Small Business Owners
If you are a small business owner, you may have considered establishing a self-managed super fund (SMSF) . An SMSF is a unique retirement savings vehicle that gives investors the freedom to manage their own investments and provides access to tax incentives and other benefits that other superannuation funds offer. Here’s a closer look at some of the key benefits of having an SMSF: Tax Savings One of the main advantages of establishing an SMSF is its tax savings opportunities. Contributions to a person’s SMSF are taxed at 15%, which is far lower than the marginal income tax rate most people pay on wages, salaries, or business profits. Plus, if members decide to withdraw from their fund before they reach pension age – usually 55 for those born after July 1, 1961 – contributions may be subject to tax instead of regular income. Reduced Fees Because there are no external management fees associated with a self-managed super fund , it can potentially save you lots of money in fees compared t