Question:
I have three retirement annuities can I take one third of each one out in cash , is there a max . If this max is reached in the first two , when my third one comes due Iget no cash out ? . Does the max ever change . I understand the max is R500k Thanx Andrew
Answer:
Andrew, You can take one-third of each as cash. The R500 000 limit refers only to the amount that can be taken tax-free. The retirement lump sum tax table - applied cumulatively - provides as follows: the first R500 000 is not taxed, the balance to R700 000 is taxed at 18%, the balance to R1 050 000 at 27% and any amounts above that at 36%.