Transfer balance of lump sum to living annuity. Is there tax involved?

By Marc Sevitz · Updated

I am retiring now on 63 First R500000 of Lump sum is tax free. If I ask my company to transfer balance of Lump sum that is R400000 to a Alan Gray living annuity. Will there be any tax deducted.
TaxTim Marc

TaxTim Marc said:
19 March 2015 at 23:23

In order for amounts transferred to be tax free, they must be transferred to a preservation fund, so speak to your finance house about what products they have that can achieve a tax free result, but get you the best financial arrangements to suit your monthly needs.