Question:
Hi there. I have resigned from my company and would like to know more about the withdrawal procedure. My amount accumulated is R94k and I was told I can get in cash up to R25k (tax free) and the rest I would like to transfer to my long standing Sanlam retirement annuity plan. Can you please advise on this. I believe the option to select on the withdrawal form is (2). I am studying and the cash can settle my tuition fees. Kind regards, Megan
Answer:
Megan, Assuming you are a 10X client and talking with regard to the 10X withdrawal notification form, then you would go the section "Withdrawal options" and fill in R25 000 under Option 1 and the balance under Option 2 Sanlam will have to provide you with the details that you require to fill in the rest of the Option 2 section. If this is your first withdrawal from a retirement fund then the R25 000 will not be taxed. By transferring the balance to the retirement annuity you will effectively lock up this money until you turn 55. Your alternate option is to transfer to a preservation fund. You can access this money one more time before you turn 55, or transfer it your new employer's fund one day.
