Via a TFSA, individuals can put their
savings into suitable investments and not pay tax on
the investment income and capital gains that they earn,
or on withdrawals from the plan.
At Glacier, we are dedicated to improving the savings
culture in the country, and in answer to government’s
initiative, we’ve introduced the Glacier Tax-Free
Glacier is an administrative financial services provider and is
therefore an approved provider of the product introduced by
National Treasury. The Glacier Tax-Free Investment Plan can
be accessed with the help of a financial planner.
The minimum investment amount for the Glacier Tax-Free
Investment Plan is either:
Clients will have access to:
A TFSA allows individuals to set money aside and watch
those savings grow, tax free, throughout their lifetime.
They’ll benefit from the effects of compounded growth, while
interest, dividends and capital gains earned in a TFSA are tax
Only natural persons can invest in this product. Legal entities
(e.g. companies) and trusts will not be eligible to invest in a
A TFSA can be held in the name of any individual, including
children. All account holders will need to have a bank
account in their own name in order to transact in the TFSA
once it has been opened.
The following table highlights the tax treatments for individuals across the various types of products.
RA, Preservation Funds, ILLA
Tax-Free Investment Plan
20% withholding tax
Contractually up to
retirement age, a client
will be in the same tax
position as a Tax-Free
Investment Plan (0%),
provided no withdrawals
Tax will apply when a
withdrawal is made,
including the payment
of a lump sum at retirement.
tables are applicable.
For more information,
please refer to a tax
Age < 65: first
R23 800 is tax-free;
Age > 65: first
R34 500 is tax-free
Fixed 30% withholding
40% of marginal tax
Annual exemption of
Fixed 12% withholding
The maximum TFSA contribution limit is currently R33 000
in any given tax year (1 March to the end of February). An
annual lifetime limit also applies, and this is currently set at
The minimum amount to access the Glacier Tax-Free
Investment Plan is R33 000.
Yes, but it is extremely important to understand that any
realised gains from such investments will incur capital gains
Any contributions exceeding the prescribed annual and
lifetime limits will be taxed at 40%.
There is no limit on the number of Tax-Free Savings
Accounts an individual can have across different service
providers. However, they need to ensure that their annual contributions across all their Tax-Free Savings Accounts (at
Glacier and other providers) do not exceed the annual and
lifetime contribution limits. It is the individual’s responsibility
to monitor their annual contributions.
Unfortunately not. The maximum contribution in any given
tax year is R33 000 regardless of whether the client has
used his/her past contribution limits in full.
No, they can take out as much of their money as they want,
whenever they want.
An individual’s TFSA savings can be withdrawn from their
account at any time, for any reason, and all withdrawals are tax free. The full withdrawn amount can be put back into
the TFSA, but this will be regarded as a contribution. It is
the individual’s responsibility to ensure that this does not
breach their contribution limit within a tax year, as an overcontributed
amount will be subject to a 40% penalty tax.
Individuals can select from a wide range of collective
investment funds on Glacier’s platform, including selected
wrap funds. (Funds with performance-based fees, as well as
personal share portfolios are excluded.)
There is no restriction on how long an individual can invest
their money into a TFSA.
On death, the investment will form part of the estate and
estate duty may be payable. While the investment is held
within the estate, the returns on it will remain exempt from
income tax, dividends tax and capital gains tax.
Note that when transferring the amounts in a Glacier Tax-
Free Investment Plan to a beneficiary’s tax-free investment,
the transfer will be regarded as a contribution and is
subject to the annual and lifetime contribution limits of the
Legislation currently does not allow a TFSA to be used as
any form of security.
It remains the investor’s responsibility to monitor their
TFSA contributions across all providers and to ensure
that they do not exceed the legislated annual and
lifetime limits of R33 000 and R500 000 respectively*.
Any excess amounts will be subject to a 40% penalty
charge by SARS. Glacier will be responsible to report
on all Tax-Free Investment Plans held on their platform
Should contributions be received that exceed the
maximum prescribed contribution limits, the overcontributions
will either be invested in an existing
Glacier Investment Plan of the investor or paid back
to the investor’s bank account on record. Only the
maximum portion allowed will be invested in the Glacier
Tax-Free Investment Plan.
Glacier reserves the right to charge an administration
fee of up to R250.00 for the reimbursement which will
be deducted from the amount before payment to the