Question:
I have a small retirement annuity, paying out R27 500, thats the third, is that taxable?
Answer:
Mr(s) De Jager,
If this is your first withdrawal from a retirement fund, then this amount is not taxable.
Please note that as from 1 March 2015, you do not have to annuitise any part of your retirement annuity if this is your only retirement annuity and its full value at retirement is less than R150 000. The whole amount would be paid out tax-free as the first R500 000 of your cash lump sums on retirement are not taxed (net of any previous lump sum withdrawals). As you do not have to claim your retirement annuity on maturity it may make sense for you to hold on until 1 March 2015, to avoid annuitising such a small amount.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
