Changing Employers, Withdraw Provident Fund or Transfer to New Employer?

b_crazy

Expert Member
Joined
Oct 17, 2006
Messages
3,336
As the title suggests, should I withdraw 100% and throw it into a fund, or just transfer to new employer's fund?
 

Turing

Member
Joined
Jan 11, 2019
Messages
19
Regardless of what you decide, make sure you don't pay tax when moving it.

You will incur a tax penalty if you go from pension to provident. In that case, transfer to a pension preserver.

Also keep in mind, if you are going from provident to pension, you will not pay tax, but may be liable for tax in future, should you move again.
 

Gtx Gaming

Gtx Gaming
Joined
Aug 25, 2008
Messages
19,178
First time you cash out provident fund you can get a portion tax free, so I took mine out.
 

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
51,506
As the title suggests, should I withdraw 100% and throw it into a fund, or just transfer to new employer's fund?
Why not the 3rd option? Move into a Provident Preservation Fund...

Don't cash it out, you will never be able to catch it up.
 

RandomGeek

Senior Member
Joined
May 14, 2015
Messages
968
Do a Section 14 transfer of the full balance directly to a low cost financial institution's provident fund. Why dont i recommend moving it to your new employers fund? I have found the finance/HR people dealing with this at many companies to be ...kinda useless. Skip the middle man and go directly to a decent financial institution. And I echo that you should be be very careful before cashing out...dont spend it, this is money meant for your retirement
 

b_crazy

Expert Member
Joined
Oct 17, 2006
Messages
3,336
Thanks for the advise guys. I'll look into a new provident fund. I didn't realise there are tax implications.
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
37,109
Never withdraw.

Transfer it to a non-employer fund of your choice that you can control.

Like 10x for instance. PM me and I’ll send you a referral link then you get fees discounted for the first six months and a R250 Takealot voucher.
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
37,109
Thanks for the advise guys. I'll look into a new provident fund. I didn't realise there are tax implications.
It scares me that your current employer or provider couldn’t even be bothered to educate you in this regard.
 
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