A SMSF fund has trading losses accumulated with two persons over 65 and in pension phase, and another unrelated young person joins the fund and starts contributing to the pension fund and becomes a trustee.
If the pensioners exhaust all their funds, will fund trading losses remain in the fund and be available as credits for future trading gains to the young fund member?
A: This will depend on how the fund is run once the younger person joins. If the trustee segregates their pension assets then all capital gains and losses on those assets are ignored forever. When using segregated assets the capital losses are not lost forever.
I recommend you take some good advice to determine which approach, that is, segregated and unsegregated, is best to use.
