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What is the difference between withdrawing and switching your money?

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You can put up to R33,000 each tax year, and R500,000 over your lifetime, into tax free investments.

If you first withdraw from a tax free investment and then invest it in another, the money will count toward your annual and lifetime limit.

If you switch from one tax-free investment to another, and both investments are through 22seven, the money will not count toward your annual or lifetime limit.

And so if your intention is to reinvest the money in a different Tax Free investment through 22seven, you should “Switch” rather than “Withdraw”.

To find out more about switching, read more here or chat to one of the Svens.

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