Preservation Fund FAQ
What is a tax directive?
Hi, if I am awaiting a pay out and the company that is to pay me out sends me a SMS stating that pay out is approved and that a tax directive is required, what does this mean and how much is to be paid towards this tax directive? Thanking you in advance Nicola
Can I make a withdrawal from my preservation fund before retirement?
Hi, I am 56 years old, still working, in financial trouble and have a paid-up retirement annuity that has R185 000 in the fund, and a provident preservation fund that has R43 000. If I withdraw the full amount from the provident preservation, will I pay no tax? The term of the preservation is 2018. Also, what is the best thing to do - should I retire from the retirement annuity and invest the tax-free lump sum, or should I leave it until the retirement age of 60? Confused.
Can I transfer my pension fund to my new employer?
My question is as follows: I am now taking up a new job and wonder whether I can transfer my pension fund to the new employer or keep it in a pension preservation fund. Which one will be better? Do I legally have this choice? Should I take early retirement (I am eligible) or should I resign?
Should I be owing SARS money if my employer deducts PAYE?
I recently found out that I owe SARS R21 000. I was under the impression that as long as I am registered and my employer is deducting my tax, I am fine. I registered in 2005 and have never submitted tax refund. I just don't understand how it can estimate to this amount. I would like to know if SARS can deduct that amount from my provident fund when it pays out?
What is the pension fund pay-out timeframe after dismissal or retrenchment?
How long does it take for a person to receive their pension fund pay-out after dismissal or retrenchment?
