Savings Pot withdrawals
Caution: Taking a Savings Pot withdrawal will reduce your future retirement or resignation benefit from the Fund.
Tax: SARS will tax your Savings Pot withdrawal as income in your hands, based on the higher of the income you declare on your withdrawal request and your taxable income for the previous tax year. An underestimate of your income will result in you having to pay additional tax (and possibly penalties) to SARS at the end of the tax year.
Administration fee: If you request a Two Pot withdrawal using either the WhatsApp option or the member website option, a R250 administration fee will be deducted from the payment. If you submit a paper Two Pot withdrawal form, a R350 administration fee will be deducted from the payment.
Beware of scams:
Please do not respond to any electronic (WhatsApp, email, etc) messages purporting to be from the Fund or the Fund's administrator (Momentum) offering to assist you with a Savings Pot withdrawal or to process your Savings Pot payment. Any such message is a SCAM. You must initiate a Savings Pot withdrawal yourself on the basis set out in the Two Pot Counselling document below.
All the Pots are invested the same: Your Savings Pot, Vested Lump Sum Pot, Vested Annuity Pot and Retirement Pot are invested the same, i.e. you will receive the same percentage return (which may be positive or negative) on all the Pots.
Retirement Pot: Your Retirement Pot cannot be taken in cash on resignation and must be preserved to retirement.
View a YouTube video of the Two Pot webinar
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