The 28 February deadline marks the end of the South African tax year. Any contributions made after this date will only count towards the next tax year, meaning you could miss out on valuable tax benefits for the current year. Acting now ensures you don’t leave money on the table and gives you the chance to optimise your financial position before the clock runs out.
This is your last opportunity to make smart financial decisions that could significantly lower your taxable income and grow your savings. If you haven’t already maximised your tax-saving opportunities, now is the time to act.
Here’s how you can take advantage of these benefits before it’s too late.
Maximise Your Retirement Annuity (RA) Contributions
One of the most effective ways to reduce your taxable income while securing your future is by contributing to a Retirement Annuity (RA).
Here’s why it’s a smart move:
- Tax-deductible contributions: You can contribute up to the lower of R350,000 or 27.5% of your taxable income and claim it as a tax deduction. This directly reduces your taxable income, lowering your tax bill.
- Compounding growth: The sooner you contribute, the longer your money has to grow tax-free within the RA, setting you up for a more comfortable retirement.
How to make the most of it:
- Check how much you’ve contributed so far this tax year.
- Top up your contributions before the deadline to reach the maximum allowable deduction.
- Consult a financial advisor, like Gamma Wealth, to ensure your contributions are optimised for maximum tax benefits.
Take Advantage of Your Tax-Free Savings Account (TFSA)
Another powerful tool for tax-efficient savings is the Tax-Free Savings Account (TFSA). Here’s why you should consider maximising your TFSA contributions:
- Annual limit: You can contribute up to R36,000 per year (with a lifetime cap of R500,000).
- Tax-free growth: No tax is levied on interest, dividends, or capital gains earned within the TFSA.
- Flexibility: You can access your funds at any time without penalties, making it a versatile savings option.
Smart strategies to maximise TFSA benefits:
- Ensure you’ve reached your annual limit before 28 February.
- Use your TFSA for long-term, high-growth investments like equities to maximise returns.
- Avoid over-contributions to prevent penalties.
Why Acting Now is a Smart Financial Move
Procrastination could cost you thousands in missed tax savings. By acting now, you not only reduce your taxable income for the current year but also set yourself up for long-term financial growth. The earlier you invest, the more your money can grow through the power of compounding. Plus, with expert advice from a financial planner, you can ensure you’re making the most of every opportunity available to you.
Don’t Miss Out – Act Now!
The clock is ticking on this year’s tax benefits. Whether it’s boosting your retirement savings through an RA or maximising your TFSA contributions, now is the time to act. Don’t leave money on the table – take control of your financial future today.
Need guidance? Gamma Wealth is here to help you make the best financial decisions before the 28 February deadline. We are here to guide you through the process, ensuring you maximise your tax savings and set yourself up for long-term success.
By taking action before the 28 February deadline, you’re not just saving on taxes – you’re investing in your future. Let Gamma Wealth help you make the most of this opportunity.
