6/02/2018. TRIS Strategy Tips and Traps. Highlights & learning objective. TRIS fundamentals. Tim Miller

Transcription

1 TRIS Strategy Tips and Traps Tim Miller Miller Super Solutions Highlights & learning objective The validity of TRIS and salary sacrifice arrangements Creating new intrists are there benefits in multiple pensions? Once a TRIS always a TRIS satisfying certain conditions of release Can your TRIS be reversionary? Learning Objectives Understand that a TRIS is more than just accumulation money Identify strategy opportunities for your clients via the use of a TRIS (or two) Plan for different death benefit scenarios should your client have a TRIS TRIS fundamentals Access a Transition to Retirement Income Stream upon attaining preservation age: People who turned Date of Birth Preservation Age 56 during 2017 are Before 1 July divided between being able to 1 July June commence a 1 July June pension and having to wait another year 1 July June July June After 30 June Preservation age is a moving beast STRATEGY TRAP 1

2 TRIS from 1 July Accumulation Phase Retirement Phase Fund income taxed at 15% Not subject to Transfer Balance Cap No access to Lump Sums* Member income still subject to tax concessions Separate interest * Unrestricted non-preserved exception Subject to recipient satisfying nil cashing restriction condition of release Retirement Permanent Incapacity Terminal illness Age 65 Fund income = exempt current pension income subject to Transfer Balance Cap - $1.6m Lump sums NOT counted towards minimum. The story so far 41 Runs own business $230,000 in SMSF TRIS Strategy Tips and Traps TRIS Strategy thought process Accumulation v Retirement Interest Segregation Reversionary pension Death benefit income stream Single v TRIS s Salary Sacrifice Splitting Re-contributions 2

3 What considerations do we give to Jay Jay starting a TRIS? Nonconcessional Salary Sacrifice / Personal Deductible Spouse Splitting Member Allocation allocation Managing Transfer Balance Cap 3

4 Manage Market Movement Future ECPI What if a TRIS member dies? As a Transition to Retirement pension is commenced in Accumulation Phase, it cannot revert to a spouse unless an appropriate condition of release has been met by the spouse Problematic issue associated with a TRIS not autoconverting to an ABP The pension can be paid as a death benefit income stream to a spouse Measured against the Transfer Balance Cap from date of commencement NOT 12 months from date of death as with reversionary Reversionary Pension? Income Stream? Lump Sum? Income Stream? Lump Sum? Lump Sum? 4

5 The story ends TRIS provides Jay Jay with an opportunity to lower his personal marginal tax TRIS provides Jay Jay with an opportunity to enhance Glory s balance TRIS provides Jay Jay with an opportunity to start planning for his wealth distribution from preservation age The material shown in this presentation has been prepared by Tim Miller from Miller Super Solutions and is for general information only. It is not intended to be, nor should it be read as specific personal product or superannuation advice. While all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Miller Super Solutions. Before acting on any of the information contained in this presentation you should obtain advice from a specialist superannuation or tax professional, whichever is appropriate to your specific needs, objectives and financial situation. 5