Tax guide
Two-Pot Savings Withdrawals and Tax
A withdrawal from the savings component is income in the year you take it. The fund withholds tax using a SARS directive. That withholding can still be short.
Marginal rate, not the lump-sum table
SARS and National Treasury are aligned: savings-component withdrawals are included in taxable income and taxed at your marginal rate. Source code 3926. Do not apply the retirement lump-sum table to a two-pot cash-out.
Once a year, subject to the fund
Usually one savings withdrawal per tax year, with a typical minimum of R2,000. Fund rules still apply. The retirement and vested components stay restricted.
On assessment
If you have other income, the directive may under-withhold. Check the ITA34. Auto-assessment in 2026 can miss the shortfall if you do not look.
Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.
Related reading
Find the two-pot and RA lines in your bank statements
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