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Thando says: 15 July 2015 at 13:43 I just resigned and I want to transfer R150,000 to my retirement annuity and withdraw the R130,000 as cash. What are the tax implication in doing this? |
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TaxTim says: 15 July 2015 at 13:45 Where is the money currently held? |
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Thando says: 15 July 2015 at 13:49 At ABSA Wealth Builder under the company xxx. |
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TaxTim says: 15 July 2015 at 13:52 You would pay tax on the entire withdrawal based on the tables in our Lump sum calculator |
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Thando says: 15 July 2015 at 13:57 I was under the impression that I only get taxed on the cash withdrawal and the transfer to my personal retirement annuity fund was tax free? So if I want to withdraw some of the cash, I will not be able to do that? |
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TaxTim says: 15 July 2015 at 14:19 It is only tax free if you transfer from one fund to another fund such as from a pension fund to a pension preservation fund. What type of fund is the ABSA Wealth Builder? |
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Thando says: 15 July 2015 at 15:09 It is a provident fund, I have R286,000 on the fund and I want to transfer R150,000 to my personal retirement annuity fund at Liberty and withdraw the rest as cash. |
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TaxTim says: 15 July 2015 at 15:41 You need to transfer it to a Provident Preservation Fund in order for the amounts not to be taxed - however you can speak to your RAF provider at Liberty to see if they can assist you in setting up a tax free transfer. |
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