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Transfer from one retirement annuity fund to another - how to handle on efiling?

Posted 10 July 2014

During the 2013/2014 tax year I moved a retirement annuity from one fund to another. As part of this process the accumulated value in the "old" RA was paid over as a lump sum into the "new" RA.

As a result, the "old" fund issued me with an IT3a for the lump sum payout. This IT3a used code 3920 for the lump sum payout, with an additional code 4 indicating it is a tax exempt lump sum payment (there is also a tax directive number on the IT3a).

How do I handle this on eFiling when completing my income tax return?

The IT3a shows on eFiling as part of my income. Will SARS know that this amount is not taxable, or should in enter this amount under the section "income not deemed taxable"? I played around with this option, but whether I put the amount in as non-taxable or not doesn't seem to make a difference when I use the "calculate results" option on the eFiling website.

TaxTim TaxTim says:
10 July 2014 at 18:39

Does the amount drag into your calculation is taxable, it should not affect your taxable income or your taxes payable so you can go ahead and submit if the IT3a has the same source codes and directives.

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