Tax warnings and the long-term effect if you are withdrawing from the two-pot retirement savings

Price:
R422.05 (VAT Incl.)
Level:
Tax Professionals
Sub-level:
Taxation
Lecturer:
Jeanmari van der Schyff
Duration:
120 Minutes
Additionals:
   CPD Assessment
   Certificate

Lesson Outline

The two-pot system is meant to support long-term retirement savings while offering flexibility to help fund members in financial distress.

Due to the tax consequences, withdrawing from any of the pots should be approached with caution.

  • Understanding the tax warnings and the long-term effect of withdrawing your retirement funds early.
  • Understanding the three components (or ‘pots’): the vested, savings, and retirement components
  • What regulations allow as a withdrawal per tax year.
  • What additional conditions do you need to be aware of to be able to withdraw?
  • The tax consequences if you withdraw funds.
  • The long-term negative impact of insufficient funds left to make up the shortfall before retirement.
  • What to use the funds for if you need to withdraw due to cash constraints.