Two-pot withdrawal tax calculator
Thinking of dipping into your two-pot savings component? Enter your expected income for the year and the amount you want to take out to see the likely tax and what you will receive.
Your details
Estimated amount paid to you
R18 405.00
26.4% of the withdrawal goes to tax
- Tax on withdrawal
- R6 595.00
How we worked it out
- Annual income before withdrawalR360 000.00
- Tax on income without withdrawalR56 172.00
- Tax on income plus withdrawalR62 767.00
- Tax on the withdrawalR6 595.00
Difference between the two (SARS annual payment method)
- Fund administration feeR0.00
- Estimated amount paid to youR18 405.00
- Only one savings withdrawal is allowed per tax year. SARS first deducts any tax debt you owe.
How the two-pot system works
Since 1 September 2024, new retirement contributions are split: one third goes to a savings component you can access before retirement, and two thirds to a retirement component you cannot. Money saved before that date sits in a vested component, minus a once-off seed amount moved into savings.
Why the tax can be higher than you expect
Because the withdrawal sits on top of your salary, it is taxed at the rate of your top bracket, from 18% up to 45%. Someone earning R360 000 a year who withdraws R25 000 pays tax at 26% on the first part and 31% on the rest, because the withdrawal crosses the R383 100 bracket boundary.
Frequently asked questions
How is a two-pot savings withdrawal taxed?
It is added to your taxable income for the year and taxed at your marginal rate. SARS issues a tax directive to your fund, which withholds the tax before paying you. The retirement lump-sum tables and their tax-free amounts do not apply.
How often can I withdraw, and how much?
You can make one savings withdrawal per tax year, of at least R2 000, up to the balance in your savings component.
Why did my fund withhold more tax than this calculator shows?
The directive is based on the income SARS knows about, and your fund may also deduct an admin fee. If you owe SARS, the debt is deducted first. Any over- or under-deduction is corrected when your annual return is assessed.
Do I need to be registered for tax?
Yes. SARS will not issue a directive without a tax reference number, so register first if you have never been registered.
Is it a good idea to withdraw?
That depends on your circumstances. Money withdrawn now loses years of tax-free growth and is taxed at your marginal rate, which is usually higher than the tax at retirement. Consider speaking to a registered financial adviser.