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Can I withdraw and reinvest money in the same year in a tax free investment account?

Posted 4 May 2016

Ernest said:
4 May 2016 at 16:49

If I invest R30 000 into a tax free investment account in one year, and withdraw R10 000 from that account in the same year, then my total contribution for the year is R20 000. But if I then later in the same year, reinvest the R10 000 into the account, will I be penalised because my total contribution is R40 000 for a specific year?

TaxTim Nicci TaxTim Nicci said:
4 May 2016 at 20:01

You cannot reinvest money beyond the R30 000 limit without being taxed on the contributions even if you withdraw.

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