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Thanks for sending the query by. With a purpose to reply your query higher, we would wish to make clear some information and make some assumptions.
In your query, you point out that you simply had a retirement annuity fund by your earlier employer. Nevertheless, because it was a Momentum FundsAtWork product offered by your employer, it will need to have been both a pension or a provident fund. If the product was a retirement annuity, you wouldn’t have been in a position to entry the funds earlier than age 55 (besides in sure uncommon circumstances).
Secondly, as you talked about your earlier employer, we have now assumed that you simply left their make use of because of resignation, retrenchment, or dismissal. In any of those cases, as a member of the fund, you’d have had the choice to have your gathered funds paid to you in money, topic to tax. Nevertheless, this feature can solely be initiated and authorised by the retirement fund member and never by the employer. As soon as the member points an instruction to have the funds withdrawn, the South African Income Service (Sars) will start the method of issuing a tax directive and, as soon as this course of begins, there is no such thing as a manner of stopping it. Consequently, you wouldn’t have the ability to recoup the tax in your case.
Nevertheless, if the right process was not adopted by your employer, you might be able to convey a case to the Workplace of the Ombud for Monetary Providers Suppliers (FAIS Ombud) to hunt compensation.
When leaving your employment, your earlier employer ought to have offered you with a withdrawal instruction doc whereby you’d have had the choice to:
- Stay a deferred member of the umbrella fund; or
- Switch to a brand new employer’s fund (if accessible); or
- Switch to a private preservation fund; or
- Money within the funds.
When you had made your selection, the employer would wish to submit the shape to the fund administrator for processing.
In case you had elected to stay as a deferred member of the umbrella fund or switch to a brand new fund or preservation fund, there would have been no tax implications.
Nevertheless, if you happen to had elected to withdraw the funds, such withdrawal could be topic to tax. As you’re underneath the age of 55, your withdrawal could be taxed as per the prevailing withdrawal tax desk.
In case you didn’t full the withdrawal instruction kind, the umbrella fund (being Momentum) would by default have positioned you within the deferred standing the place you’d have remained a member of the umbrella fund till such time as you have chose in any other case, or till retirement.
As you obtained the funds in money, there should be a document with Momentum FundsAtWork the place you signed the withdrawal choice. We advocate that you simply request a replica of this written instruction from Momentum FundsAtWork. If they can’t discover proof of such an instruction, then you could be in a greater place to request that they repair the error.
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