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Tax on package and retirement cash withdrawal under the age of 50

Posted 21 March 2016

Daniel says:
19 March 2016 at 18:43

I am 40 years old. I have taken the retrenchment package from my company, the amount of R307,000. I also want to withdraw my retirement fund of R714,000 as cash amount and invest in the bank. Can you please inform me what my tax will be on my retrenchment package and my retirement.

TaxTim TaxTim says:
21 March 2016 at 13:23

There will not be any tax on the retrenchment package, however when you withdraw the RAF then you need to add the two amounts together and make use of our Lump sum calculator to work out the tax amount - make use of the after retirement.

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