Upon leaving your employment as a result of resignation, retrenchment, or dismissal, one of the options you have for your retirement funds is to transfer them to a preservation fund. As a repository for the proceeds of company-sponsored retirement funds, preservation funds have some distinctive features that investors should be aware of.All preservation funds are subject to the same regulatory framework, with the Pension Funds Act and Income Tax Act being the most notable.
For example, if you have a longer investment horizon, you may be able to take on more investment volatility, whereas if you’re heading towards formal retirement, you may want to consider weighting your strategy towards capital preservation depending on your circumstances. Note: If you are unsure whether you’ve made a previous withdrawal, you can request your service provider to prepare a tax simulation for you, which will provide clarity on how you will be taxed.Generally speaking, you may not make any additional contributions to your preservation fund, so keep this in mind when deciding what to do with your retirement fund benefits, except where the money originates from another retirement fund.
When it comes to formal retirement, you are permitted to retire from any of your preservation funds at any time from age 55 onwards, although keep in mind that there is no upper age limit at which you must retire from a preservation fund. When retiring from a pension preservation fund, you have the option of commuting up to one-third of the proceeds as cash, with the first R550 000 being taxed at zero percent, while the remaining two-thirds must be used to purchase an annuity income.
If you are married with the accrual system, the value of any retirement funds held by either spouse will form part of the accrual calculation at divorce should they not have been expressly excluded in the anti-nuptial agreement.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: brieflyza - 🏆 10. / 68 Lire la suite »