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Which tax rates apply to lump sum withdrawal after transfer from provident to preservation fund

Posted 29 July 2015 under Tax Q&A


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Mike says:
29 July 2015 at 1:04

I'm over 55 years of age and was retrenched at the end of March 2015. Following retrenchment I chose to transfer my provident fund to a preservation fund. Now, four months later, I'd like to withdraw the full benefit (more than R1 050 000) as a lump sum from the preservation fund. Will I still be taxed for the lump sum withdrawal as a retrenched person (i. E involuntary termination of employment) or will I now incur the higher rates applicable to persons who terminate employment voluntarily.

This entry was posted in Tax Q&A and tagged , . Bookmark the permalink.

TaxTim TaxTim says:
29 July 2015 at 8:00

Unfortunately you will not carry the benefits across if you chose to withdraw before the age of 65.

Mike says:
29 July 2015 at 12:58

Thanks, I'm 57, and that is exactly what I needed to know!

TaxTim TaxTim says:
29 July 2015 at 20:39

Only a pleasure!


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