10X Investments (2024)

You will be taxed on R25 000. The first R25 000 of yourprovident fundwithdrawalisnot taxed, so if this is your first (retirement fund) withdrawal youwill pay no tax. If it is your second, you would most likely pay tax at18%.Note that in terms of new retirement reforms coming into place, providentfund members will be required to use two-thirds of their savings atretirement to buy an annuity, but their vested rights will be protected, ieyour provident fund balance at 31 March 2015, and subsequent returns onthis balance, will fall under the old rules.If you transfer to a pension fundbefore, you will lose this vested right, so you should consider doing thetransfer only after 1 March 2015, or transferring to a providentpreservation fund instead, if this flexibility is important to you.