Have you maximized your tax-free allowance for your RA Investment?
The month of February is an important month if you invest in a registered retirement annuity fund. It is an important opportunity to make use of the incentives offered by SARS before the tax year ends on the 28th February 2015.
If you have not yet contributed your full deductable retirement annuity allowance of 15% of your annual non retirement funding income, this can still be done before the 28th of February in order to maximize your tax benefits.
We have listed some of the key features and benefits of contributing to a retirement annuity (RA) on the Allan Gray platform:
1. A tax-efficient way to save for retirement
Contributions to an RA are tax deductible (subject to certain limits)
2. Most RA’s offer low product fees, choice and flexibility
You can choose which unit trust to invest in that best suits your needs and you can switch between unit trusts at no extra cost as your needs change
3. What happens at retirement?
One third of your investment can be taken as a cash lump sum when you retire. The other two thirds needs to be invested in a living annuity or guaranteed life annuity. Depending on the pre-tax value, you can also take the full investment as a cash lump sum
4. Online instructions are simple
You can submit instructions and make additional contributions online. You can also monitor your investment and download your RA contribution certificates online.
5. An Allan Gray RA is the least expensive from a fee perspective
0,5% charged per debit order and 0,5% p.a. to manage your RA portfolio is the least expensive RA savings cost structure available in the market and with no penalties if you stop contributing
Talk to one of our advisors today to start or top up your retirement annuity today.