Contributions made to pension funds and retirement annuities with after-tax money – in other words, over-contributions – after March 1 last year could form part of your dutiable estate. This follows a recent amendment to the Estate Duty Act. Tax legislation allows contributions in excess of R350 000 per year to be rolled over to the next year and any undeducted contributions can be used to reduce your taxable income in retirement. But the portion of these over-contributions that have not been used to reduce your tax liability by the time you die will be estate-dutiable.
Louis van Vuren and Ronel Williams join Ingé Lamprecht of Moneyweb to provide context on this amendment and the implications thereof.
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