Do I pay tax on the pay out ? What about the R 500 K tax free rule ?

I have been retrenched, the money from my Pension Fund has been transfered to Retirement Annuity Fund with a portion being paid out to me. Am I liable to pay tax on my pay out? I have not reached retirement age as yet. I am 57 yrs old.

Did the fund issue you an IRP5 or deduct tax before making payment to you?

How does the ''Tax Free " rule work. My understanding is that you are allowed to take out one third up to the limit of R500k, and if you take out more, then anything exceeding this amount is taxed.The rule states that you can take out the money after the age of 55 yrs old.Thank You.

There is a R550 000 tax free portion thereafter amounts are subject to the Lump sum calculator tables.