Retirement Annuity vs Pension Fund — Same 11F Cap, Different Pipe

The shared cap

Section 11F allows a deduction for contributions to approved retirement funds. For the 2027 year of assessment the limit is the lesser of 27.5% of the greater of remuneration or taxable income, or R430,000. Pension, provident, and retirement annuity contributions sit in that one bucket.

What the IRP5 already took

Code 4001 (and related retirement codes) is usually the employee amount already withheld. That is already in the 11F working. Adding the same debit order again is a double claim. Employer contributions have their own treatment — do not invent a second personal deduction from the fringe line.

The RA you pay yourself

A retirement annuity paid from your bank needs the fund certificate for the year. It can still fit under 11F if you have room under the cap after the workplace fund. Two-pot rules apply to these funds too. A withdrawal from the savings pot is not a matching extra deduction.

TFSA is not 11F

A tax-free savings account is section 12T. It does not use the 27.5% cap and it is not a deduction. Taxzi can list RA debit orders for you to confirm. You file. Confirm the cap on sars.gov.za.

Questions

Can I deduct both my pension and my RA?

Yes, in one 11F calculation, up to the shared cap. Do not add the IRP5 4001 and the same amount again.

Is an RA better than a pension for tax?

Same deduction rule. The difference is who pays, portability, and fund rules — not a second tax table.