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Pension Fund Payout pre-retirement for tax purposes?

Posted 30 January 2015 under Tax Q&A


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I am 32 years old and have recently resigned (from a government department). I would like to withdraw my pension, but as part of this can either have it paid out to me (and taxed), or transferred to an RA fund. What are the tax implications for me on payout, considering I pay tax on my salary and business income, and am thus on a relatively high rate?

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TaxTim TaxTim says:
1 February 2015 at 23:21

The tax rates on lumpsums are on a specific table and are not subject to the same tables as your normal income. If you withdraw your money you will be taxed as per the Lump sum calculator

If you transfer the money you will not pay any tax now.


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