Access to retirement annuity?

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ChrisB84

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Good day
Hope someone can give us a bit of guidance.

Short question: Is it possible to get access to your retirmenet annuity through a court order or such? I know it is not possible yet in any other way.

Long version: We are looking after the in-laws after Covid, retrenchemnet etc. We have now found out that he ows SARS money and at this stage it seems to me it's either going to be their home or hopefully rather money out of his retirement annuity. He is 52. Idealy we dont want to do a bancrputcy or liquidation.

Appreciate any advice before I go to see an attorney.
 
Why doesn't he just retire early? Surely that will allow him to access the funds
 
Is the amount in the RA significantly more than the amount owed? AFAIK an RA is protected from creditors and he might be in a better position to liquidate based on what he'll be protecting in the RA.

MidnightZA said:
Why doesn't he just retire early? Surely that will allow him to access the funds
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I don't think one can just choose to retire early short of dying, becoming disabled or emigrating. The retirement age is 55 AFAIK.

*These are just my thoughts. Totally not my field of expertise.
 
Thanks for the replies. RA is linked to age and he is not permanatly disabled or incapacitated. We are worried about the house which is only in his name, and as I understand will be first on the list to go in the event?
 
can't he make payment arrangements with SARS or was it a case of tax evasion and he got caught?
 
Retrenchment does allow access to Employer based retirement fund and there is a huge tax benefit. This was 8 years ago, not sure if law has changed
 
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Why doesn't he resign?Then he will have access to pension if it is so serious.
 
superskully said:
Retrenchment does allow access to Employer based retirement fund and there is a huge tax benefit. This was 8 years ago, not sure if law has changed
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That is still correct. Retrenchment uses retirement tax tables instead of resignation tables. Big difference
 
ChrisB84 said:
Good day
Hope someone can give us a bit of guidance.

Short question: Is it possible to get access to your retirmenet annuity through a court order or such? I know it is not possible yet in any other way.

Long version: We are looking after the in-laws after Covid, retrenchemnet etc. We have now found out that he ows SARS money and at this stage it seems to me it's either going to be their home or hopefully rather money out of his retirement annuity. He is 52. Idealy we dont want to do a bancrputcy or liquidation.

Appreciate any advice before I go to see an attorney.
Click to expand...
RAs can only be cashed in if the total value in the fund is R15 000 or less. Otherwise needs to continue to age 55.
 
Get a good tax lawyer or tax accountant with experience in dealing with SARS audits, back taxes, and the ombud. Will be worth every cent. When it comes to SARS its best to get the heavy hitters right upfront as once they start their recovery process it’s becomes harder to stop. Good luck.
 
ChrisB84 said:
Good day
Hope someone can give us a bit of guidance.

Short question: Is it possible to get access to your retirmenet annuity through a court order or such? I know it is not possible yet in any other way.

Long version: We are looking after the in-laws after Covid, retrenchemnet etc. We have now found out that he ows SARS money and at this stage it seems to me it's either going to be their home or hopefully rather money out of his retirement annuity. He is 52. Idealy we dont want to do a bancrputcy or liquidation.

Appreciate any advice before I go to see an attorney.
Click to expand...
 
I think the right sort of financial adviser is your start point. (and not an attorney)
In March 2021 the rules changed. There are tons of variables including the type of RA
Even if he can access some money... it will hurt tax wise (and penalties)

Unless this group has a financial adviser... I think you need to go to an expert.
Too many variables
 
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