Can provident fund go into RA and new employer's fund?

I will be leaving my organisation and would like to transfer half of my provident fund benefit to a retirement annuity and the remainder to my new employer's provident fund.

- Elke Brink

If our fund rules allow this, is there any other reason why I may not be able to do so? I recall hearing about the SA Revenue Service (Sars) "follow-me rule", but I can't find more information on it. Will it apply?

Dear reader, Transferring your provident fund benefits on leaving an employer requires careful consideration of tax regulations and fund rules. You intend to split your provident fund benefit, transferring half to a retirement annuity (RA) and the remainder to your new employer's provident fund.

While fund rules may permit such a split, it's essential to understand the tax implications and administrative requirements involved.

Tax implications and Sars regulations The South African Revenue Service (Sars) has specific guidelines regarding the transfer of retirement fund benefits: