Old Mutual Tax Free Savings Plan
Imagine the peace of mind that comes from having an investment that allows you to save for your dreams and goals, gives you access to your money at any time, and offers you payment flexibility. Not just that, but tax free investment – an investment where you get your full investment return without being taxed on any of the growth you have earned.
With the Old Mutual Invest Tax Free Plan, you can have all that and more.
Tax Free plan
The Tax Free plan is a simple and transparent savings solution for your savings needs. All the growth in the plan is completely Tax Free. The Tax Free Plan puts you in control of your savings and encourages you to save while giving you the peace of mind that you can access your money at any time.
Annual & Lifetime allowance
The government has set up regulations that limit you to invest a maximum of R30000 per tax year, and R500 000 over your lifetime in a tax-free plan. If you set up regular investments, the R30 000 maximum per tax year means you can invest up to R2500 per month. These limits are expected to be reviewed from time to time by the government.
If you have more than one tax-free plan, the maximum of R30000 per tax year applies across all your tax free plans, not per plan.
The South African Revenue Services (SARS) will levy a tax of 40% on all contributions which exceed R30 000 per tax year. Remember the tax year is from the beginning of March to the end of February the following year.
Even though there are limits as to how much you can invest, there are no limits on the growth of your investment. The longer you stay invested, the more you can benefit from Tax Free growth.
- The minimum regular investment is R350 per month
- The minimum Lump sum investment is R5000 or R1000 if you have a regular investment set up.
You do not have to commit to a specific investment term for your regular investments. You can choose how long you want to make payments into your plan, and how long you want to keep your money invested for. Keep in mind that the longer your money is invested, the more you will benefit from Tax Free growth.
Where your money gets invested
You choose the underlying investment funds where your money is invested in to meet your specific investment strategy.
Key Features of the Tax Free Plan
The Tax Free Plan gives you control of your investment by providing you with the following features:
- All growth on your plan is Tax Free
- Choose how you want to invest – with lump sums, regular investments or a combination of both.
- You have full access to your savings from day one – with no penalties
- You can increase, decrease or stop your regular investment at any time.
- The choice of a range of selected underlying funds to meet your unique investment needs.
- The option to switch your underlying investment funds as many times as you like at no cost.
- No term attached to your plan so you can choose how long and how often you want to invest.
You can nominate beneficiaries on your Tax Free Plan. In the event of your death, the proceeds of your investment will be paid directly to your nominated beneficiary. This means you can save on executor fees and your beneficiaries receive the proceeds quicker.
This information is of a general nature and should not substitute detailed financial planning.
The full terms and conditions are contained in the policy document.
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