How this calculation works
Estimate incremental ordinary income tax by comparing annual tax with and without the savings withdrawal. Deduct the entered fund fee and SARS debt collection, limited to cash available after tax. Validate the R2 000 minimum, available balance and one-withdrawal-per-tax-year rule.
A worked example
A R10 000 withdrawal added to R360 000 annual taxable income attracts R2 600 estimated extra income tax. A R350 fee leaves R7 050 before any SARS debt collection.
Assumptions & limitations
- This models an eligible savings-component withdrawal before retirement, not a retirement/severance lump sum. No R550 000 retirement exemption is applied. SARS issues the actual directive; your income estimate, tax debts and provider’s fee treatment can alter cash received.
- Once per tax year and a minimum R2 000 normally apply. Special cases at retirement or fund exit are outside this tool. Withdrawals reduce retirement capital.
