Tax free investment

[Kit27]

Hi guys.

Can i have more than one TFIA with different providers ? And be able to get the invested money after (investment period) without penalty. ?
E.g. TFIA with company x and Y for 2750 pm each ...over 10 years.

Thanks

 

[Radioboy]

You can have as many as you want, as long as you stay within the limit of R33000 per year. So, you wont be able to invest R2750 into each every month as that is double the allowed amount every year. You are only allowed to invest a total of R33000 per year into ALL your tax free accounts combined.

You can take the money out anytime you want - just remember the money you take out - can never be put back. For example, if you invest R33000 this year, and take out R3000. You cant invest the R3000 again into the account tax free. Any amount over the allowed limit is taxed at 40% as far as i know.

 

[Kit27]

Thanks a lot. Really appreciate it.

 

[supersunbird]

You can invest a total of R2750 x 2 = R5500.

You will just be taxed at 40% of the R2750 over-contribution come e-filing time.

 

[Radioboy]

You can invest a total of R2750 x 2 = R5500.

You will just be taxed at 40% of the R2750 over-contribution come e-filing time.

I dont understand this part ....

 

[supersunbird]

I dont understand this part ....

I was going on this:

E.g. TFIA with company x and Y for 2750 pm each ...over 10 years.

If he has 2 TFSAs and invests a total of R5500pm (aka R66 000 per year) in them, he will be taxed 40% of the R33 000 over contribution (which is R13 200), since the limit is R33 000 in total and the penalty for over contribution is 40% tax on the over contribution.