Easy Equities good or bad?

surface said:
If I google "tfsa south africa exceed limit", I get
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Yes I know that part. What I don't know is how is it recorded if you use say two or more providers. A single one won't let you deposit more than either the limits.
 
Swa said:
Yes I know that part. What I don't know is how is it recorded if you use say two or more providers. A single one won't let you deposit more than either the limits.
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You have to keep track of it yourself. When it comes time to do your tax return, provider A will say you submitted this much and provider B will do the same. This information is given directly to SARS who will total up all the contributions you made into TFSA accounts from all providers. Anything above 36000 (or 500000 total) will be taxed at 40%
 
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Nothing prevents a person from utilizing their TFSA lifetime allocation of R500k in a single fiscal year. The only drawback is being taxed R186k on the difference.

Contributing R36k on an annual basis requires ±13 years to reach the lifetime limit.
However, if you are confident a once off investment for R314 000 would outperform annual contributions it is the route to take.
 
Swa said:
Yes I know that part. What I don't know is how is it recorded if you use say two or more providers. A single one won't let you deposit more than either the limits.
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All the FSP's have reporting feed into SARS and reconciliation thereof. That is how more & more of the information is pre-filled when submitting tax returns.
 
Swa said:
Yes I know that part. What I don't know is how is it recorded if you use say two or more providers. A single one won't let you deposit more than either the limits.
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Its self managed! Dont blame the providers. In total... R36k.... in all tfsa accounts

The providers think you might only have 1. So just add it all up. You dont want to explain to sars why you funded more than the limit
 
LaraC said:
Nothing prevents a person from utilizing their TFSA lifetime allocation of R500k in a single fiscal year. The only drawback is being taxed R186k on the difference.

Contributing R36k on an annual basis requires ±13 years to reach the lifetime limit.
However, if you are confident a once off investment for R314 000 would outperform annual contributions it is the route to take.
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Technically you can exceed both but have to pay 40% tax dependent on which one you exceeded. So it all depends on whether you think you'll make up 67% profit in a reasonable time.
 
surface said:
All the FSP's have reporting feed into SARS and reconciliation thereof. That is how more & more of the information is pre-filled when submitting tax returns.
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That's the part that isn't clear. Institutions submit the buy and sell values of shares but they usually don't submit the value of funds transferred into an account.
 
Swa said:
Technically you can exceed both but have to pay 40% tax dependent on which one you exceeded. So it all depends on whether you think you'll make up 67% profit in a reasonable time.
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If you have the money to exceed the TFSA limit, you should rather just invest it outside of a TFSA and slowly work it into the TFSA over the years using your CGT exemption.

If you're already maxing your CGT exemption for other things, then you've got too much money and you must hire a pro to help you evade tax in other ways.
 
Swa said:
That's the part that isn't clear. Institutions submit the buy and sell values of shares but they usually don't submit the value of funds transferred into an account.
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So, I am not sure what you want to know. Do you want to know how exactly SARS will find out if you have exceeded TFSA limit ? I mean do you want to know exact mechanism of 'how' ?
 
Every year, all tfsa providers submit their info just like the company who you work for submit their irp’s!

Sterkte to BS that system lol
 
surface said:
So, I am not sure what you want to know. Do you want to know how exactly SARS will find out if you have exceeded TFSA limit ? I mean do you want to know exact mechanism of 'how' ?
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Very easy, you have to declare this on your tax return. Pointless to lie about it, because at withdrawal time you'll say to SARS, ”This is a tax-free account”, and they'll say “Stop talking schit”.
 
3WA said:
Very easy, you have to declare this on your tax return. Pointless to lie about it, because at withdrawal time you'll say to SARS, ”This is a tax-free account”, and they'll say “Stop talking schit”.
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yes. I agree but I am not sure what he wants to know. There is absolutely no point to mess with SARS in any respect.
 
What he wants to know, how will sars know he have 2 or 3.... maximizing each one!

(Face palm.... 2 things are guaranteed in life:

1. Death
2. Taxes)

The tfsa product tries to let people save!

I started mine when it launched! Its worth it... but stick with the rules
 
People love RA’s at firms who charges an arm and a leg, and just say: Sars gives you 15% back (so its worth it).

I read an article the other day, a Tfsa could outperform a RA.

Only time will tell.

I personally have a RA, but not by far maximizing the limits.
 
I have an existing pension preservation fund with Momentum, The TER (total expense ratio) according to the Momentum website is +- 2.5% and I am looking in transferring this pension preservation fund to a cheaper provider.

Which is the best place to transfer this pension preservation fund to : Easy Equties, Sygnia, or other (and if so which) ?
 
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