26/09/2023
THE TWO POT RETIREMENT SYSTEM!
Effective from 1 March 2024, members will be required to contribute a one third of their contributions to a savings pot and a two-thirds to their retirement to a retirement pot, amounts contributed to the retirement pot cannot be accessed before retirement, whereas the amounts from the savings pot can be accessed without any conditions but only only one withdrawal can be made during any rolling 12 months period. The minimum gross withdrawal amount is R2000.00.
When a member terminates employment the savings pot can be accessed in full.
Tax implications:
Withdrawals from the savings pot will be included in the members taxable income for that year, the withdrawal tax table will accordingly not apply to withdrawals from the savings pot.
Any funds available from the savings pot at retirement or death can be withdrawn in full or transferred to the retirement pot.
At retiment, the total value in the retirement pot must be paid in the form of an annuity which will enable the member to get a monthly payment of their retirement funds and not as a LUMPSUM!
Contact our offices for more information!
www.mokabaneattorneys.co.za
Call us on 011 881 5945
Mokabane Attorneys is a black female-owned law boutique firm in Sandton. We offer legal guidance and legal disputes services, specifically on labour-related matters, family law, medical negligence, deceased estates, and personal injury cases.
