A reminder that 28 February 2018 is D-Day for lump-sum contributions into a retirement fund.
The latest income tax provisions relating to retirement planning make it possible for taxpayers to significantly increase their tax-deductible contributions to retirement funds. In terms of this new legislation you are entitled to make contributions into a retirement fund of up to the lesser of 27.5% of your taxable income or R 350,000 and so enjoy the tax advantages associated with such a contribution.
Also bear in mind that saving for your retirement should first and foremost be made with reference to your intended retirement plans / needs i.e. tax savings via increased contributions to a retirement fund alone should never be an end in itself. Having said that, the tax advantages associated with retirement funds make them a very attractive estate planning option.
If you have any questions regarding the tax deductible amount of the lump sum that you have available to you, please do not hesitate to contact Chris or Trevor or alternatively call your appointed accounting practitioner at our offices.
