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How much can I contribute to the Satrix Retirement Plan (RA)? What are my limits?

National Treasury has put limits on the amount you can claim as a tax deduction in a Retirement annuity account. The Annual Limit is 27.5% of your gross income to a maximum of R350 000 per tax year. 

Retirement fund contributions:

  • Amounts contributed to a pension, provident, and retirement annuity funds during a year of assessment are deductible by members of those funds.
  • Amounts contributed by employers and taxed as fringe benefits are treated as contributions by the individual employee.
  • The deduction is limited to 27.5% of the greater of remuneration for PAYE purposes or taxable income (both excluding retirement fund lump sums and severance benefits).
  • Furthermore, the deduction is limited to a maximum of R350 000. Any contributions exceeding the limitations are carried forward to the immediately following year of assessment and are deemed to be contributed in that following year.
  • The amounts carried forward are reduced by contributions set off against retirement fund lump sums and against retirement annuities.

Unfortunately, there are no rollovers allowable on contribution limits. If you do not invest 27.5% of your Taxable Income per tax year, the limit does not rollover.

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Satrix Managers (RF) (Pty) Ltd (Satrix) a registered and approved Manager in Collective Investment Schemes in Securities and an authorised financial services provider in terms of the FAIS. Collective investment schemes are generally medium- to long-term investments. Unit Trusts and ETFs the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of an ETF, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange.

ETFs are index tracking funds, registered as a Collective Investment and can be traded by any stockbroker on the stock exchange or via Investment Plans and online trading platforms. ETFs may incur additional costs due to it being listed on the JSE. Past performance is not necessarily a guide to future performance and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF Minimum Disclosure Document. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF Minimum Disclosure Document and or on the Satrix website.

Performance is based on NAV to NAV calculations of the portfolio. Individual performance may differ to that of the portfolio as a result of initial fees, actual investment date, dividend withholding tax and income reinvestment date. The reinvestment of income is calculated based on actual distributed amount and factors such as payment date and reinvestment date must be considered.

*Note exchange prices are delayed in accordance with regional exchange rules.South African prices are delayed by 15 minutes; North American prices are delayed by 15 minutes.