Retirement Annuity FAQ
Do I only submit an IRP5 when withdrawing my provident fund?
I have resigned from my current employer and am awaiting provident fund pay-out. I do not have a retirement annuity; do I need to only submit my IRP5 or do I have to submit the provident fund papers as well?
Can a retirement annuity reduce my monthly tax contribution?
Is it true that a retirement annuity can reduce my monthly tax contribution? I am currently being taxed R1 600 per month, then I joined an Old Mutual Retirement Annuity last month, but I have not yet seen a difference in my monthly tax contribution.
How do I determine my total cost to company?
I receive a salary of which 60% of the total cost to company is considered retirement funding income. Of this 60%, 7.5% goes to a pension fund as employee contribution, and 12.5% goes to the pension fund as employer contribution. Ignoring bonuses and other income, I thought that 40% of my total cost to company would be considered non-retirement funding income, of which I could contribute 15% to my retirement annuity. However, on my tax certificate, my non-retirement funding income is calculated as 40% of cost-to-co...
Should I cancel my retirement annuity and only contribute to a pension fund?
Hello I was previously self-employed and was contributing R1 000 per month towards a retirement annuity. I am now permanently employed and belong to my employer's pension fund. Now, as an incentive, any additional contributions we make the employer matches. Would it be wise to cancel my external retirement annuity and rather contribute the R1 000 to my pension? Effectively the total contribution will then amount to R 2000 per month. Any tax implications of this?
How does tax work on a Retirement Annuity?
Retirement annuities are tax-efficient investment vehicles, meaning that they come with tax rebates for investors. These are the three primary tax incentives that come with contributing to your retire...
