Personal RA and SARS

[ballade]

Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.

 

[Willie Trombone]

Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.

I'm confused. How do you get tax benefit from your office of it's not paid into the RA on your behalf by them? What cash do you have that still needs to be invested?

 

[ballade]

Office is the pension fund. Personal RA is an individual thing that I submitted to my office. Each month when I get paid I pay the money into my RA.

 

[AchmatK]

Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.

You are in for a world of hurt with SARS as it should be paid into the RA before 29 Feb 2020 if it was deducted in the last tax year.

I run a payroll and also offer this to staff if they have an RA directly with one of the providers. I do however insist on monthly confirmation that the funds were in fact paid into the RA.

Both you and the company could be in trouble with SARS if the company passed on the tax benefit without ensuring that the employee was making the RA contributions.

 

[ballade]

You are in for a world of hurt with SARS as it should be paid into the RA before 29 Feb 2020 if it was deducted in the last tax year.

I run a payroll and also offer this to staff if they have an RA directly with one of the providers. I do however insist on monthly confirmation that the funds were in fact paid into the RA.

Both you and the company could be in trouble with SARS if the company passed on the tax benefit without ensuring that the employee was making the RA contributions.

Hi, Thanks. This is what I wanted to find out. Tax year 2020 was sorted on time. March 2020 now was the one I was second guessing myself.

 

[supersunbird]

Hello,

Help Please!

I have a personal RA that I get the tax benefit immediately via my work payroll. When does SARS expect me to invest the money, immediately or anytime before the tax year closes? I am thinking should hold off a bit till the dust has settled, yes I am aware that now is the time to buy but I was slowly building up my emergency fund and with the way things are maybe I should use the RA to build emergency fund quicker and once the dust settles I pay in the amount.

Thanks.

Pay as per normal, or if you really want, split the payment to twice a month, now is the time to buy, the dust rarely settles, and you need superb luck to buy in a the bottom.

FAQs on market crashes

You haven’t lost anything unless you sell.

www.moneyweb.co.za

 

[Mimen]

There is a lady called Tarryn at this company. She is an independent financial advisor,no not the type that sells you an RA or a policy. She/ they charge by the hour, it's not cheap. I'm in my 50s and saw her about 3 to 5 years ago. What an incredible investment I made. I'm no millionaire but I can now see my money growing.

Brantam Financial Services - Johannesburg

www.brantam.co.za

 

[Mimen]

Whatever you do. Google and ask around several times to select an independent financial advisor.. NOT someone that is going to sell you a policy. Someone that will give you a range of financial advice.