A little more than 1.1 million Australians have opted out of professionally run super funds in favour of a do-it-yourself approach. That's seen self-managed super funds (SMSFs) become a formidable force, collectively controlling around $878 billion worth of investments.

A common driver to set up a SMSF is the desire for greater control of our super. In reality, SMSFs face strict rules around what they can invest in, and when the accumulated savings can be accessed.

Even so, managing your own super can be very rewarding, and it's a surefire way to encourage taking an interest in your future nest egg.

The important thing to bear in mind is that the Australian Taxation Office (ATO) is the cop on the beat of mum-and-dad funds. It keeps a close eye on what SMSFs are doing. And there is one area in particular where newly minted SMSF members are landing themselves in hot water.

At times like the present, when plenty of households are facing high living costs and challenging mortgages, it can be frustrating to see a pool of cash sitting just out of reach in your SMSF.

However, the overarching rule of super is that it's money for your retirement. The best way to stay between the ATO's flags is to avoid dipping into your super early.

At a recent industry gathering, ATO Deputy Commissioner Emma Rosenzweig said the ATO's greatest concern around SMSFs is fund members accessing their retirement savings illegally. This typically means before reaching preservation age, which for most people is 60, or age 65 if you are still working.

The ATO estimates that in 2020, $380 million of super was illegally withdrawn by trustees of SMSFs. This figure would have been a lot higher if the ATO hadn't intervened and blocked a number of withdrawals.

It was a similar story in 2021, with$255 million syphoned out of SMSFs prematurely.

What's interesting is not so much the scale of early withdrawals but rather, who is making them.

ATO data suggests the bulk of illegal withdrawals are made by people who are newcomers to SMSFs.

Rosenzweig notes that a solid chunk of people set up a DIY fund chiefly to raid their super. Looked at differently, 66% of illegal early access behaviour relates to people who have established a personal super fund with no genuine intention to run a SMSF.

Just as worrying, the whole process is often facilitated by dodgy promoters who charge hefty fees to help people do this.

Not surprisingly, the ATO is looking closely at new SMSFs. The red flags the ATO watches for include SMSF members with unpaid tax debts, and those who have previously applied to access their super savings early - and who have then set up a SMSF.

The sad part of all this is that SMSF members can be hit hard if they try to pull cash out of their fund illegally. Along with stiff ATO penalties, fund members can be banned from having a SMSF again, and their name is on the public record for all to see.

Meanwhile, promoters who push the idea of setting up a SMSF to access funds early have been known to pocket fees of around $100,000.

I stress that running a SMSF can be rewarding both personally and financially, especially if you accept that during the accumulation phase it's your money - just not yet. The ATO has a range of guides available on its website. Realistically though, anyone contemplating a SMSF needs more than a pamphlet - you really need professional advice. Do choose carefully though. If someone suggests setting up a SMSF as a way of dipping into your retirement savings early, don't walk - run!