Personal investing Part 3: How to maximize tax benefits before the end of the tax year

The end of February is the end of the tax year – a great time to take a close look at your investments and consider taking maximum advantage of the incentives the government has put in place to encourage us to save.

As discussed in Part 2, there are certain annual tax benefits available to you through your retirement funds and tax-free investment (TFI) account. You forfeit these if you don’t act each year. As we approach the end of the tax year (the end of February), it is worthwhile looking at your finances. If you have cash to spare, consider taking full advantage of the tax incentives.

Every year you are able to make a pre-tax contribution to your retirement funds of up to 27.5% of the higher of your taxable income or remuneration, capped at R350 000 per tax year. If you have not maximised this benefit, you can make an additional contribution to your retirement annuity (RA) in the form of a lump sum. If you are invested in your employer’s retirement fund, you can make an additional voluntary contribution (AVC), or you can start an RA in your own name.

Read full article on www.allangray.co.za/latest-insights/personal-investing/part-3-how-to-maximise-tax-benefits-before-the-end-of-the-tax-year

December 14 2021 By Carla Rossouw - Allan Gray