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OPN TAX FREE INVESTMENT ACCOUNT
INVESTING TAX FREE
The OPN Tax Free Investment Account is a long-term
investment vehicle which allows you to contribute a maximum
allowed amount per tax year and over your lifetime without
being charged capital gains tax (CGT) when accessing these
savings or switching underlying unit trusts, dividend tax when
receiving dividends or income tax on interest earned on these
contributions. It is a tax-free investment provided for by
section 12T of the Income Tax Act. All proceeds are tax free.
It provides the opportunity for you to structure a customised
investment portfolio, tailored to your individual requirements.
Construct your personalised portfolio by investing directly in a
premium selection of domestic unit trusts.
You can choose to invest a lump sum or recurring monthly
contributions, change or cease your contributions without
incurring penalties and choose your own investment period. Even
though there is no minimum investment period, this tax-free
investment should be viewed as a long-terms savings vehicle to be
used to supplement a standard retirement savings vehicle.
Please note that only natural persons (individuals) may invest in the OPN Tax Free Investment Account.
KEY BENEFITS
Minimum investment
Lump sum: R2 000
Recurring: R500 per month*
Ad hoc:
R1 000
*The minimum recurring debit order amount if you are under the age of 30 is R200 per
month, which should be escalated to the normal minimum of R500 per month after your
30th birthday.
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Maximum limits
• The maximum capital contribution per tax year is R33 000.
• The maximum capital contribution per month is R2 750
• The maximum lifetime contribution is R500 000.
• Any contributions over these limits will be taxed by the
South African Revenue Services (SARS) at 40% of the excess
contribution value.
• Growth and the reinvestment of interest and dividends in the
OPN Tax Free Investment Account do not count towards the
contribution limits.
• Annual and lifetime contribution limits are capped and
withdrawals from your OPN Tax Free Investment Account
cannot be replenished.
• The limits apply with regards to total contributions across all
product providers and not on a per-product-provider basis.
• We will monitor your contributions to your OPN Tax Free
Investment Account to ensure that you stay within the
legislated limits. We are however not responsible for any
contributions placed with another product provider.
Investment Options
You have access to a selection of our multi-managed PPS
Portfolios and a selection of single manager unit trusts. Please
consult the Select fund range investment option schedule
available for the OPN Tax Free Investment Account. These unit
trusts may not have a performance fee structure or invest in
any vehicles or funds that charge a performance fee.
Personalise your investment
Choose your own investment name and reflect the goals
your OPN Tax Free Investment Account is helping you work
towards (e.g. “My additional retirement savings”). While your
product particulars and investment details will remain exactly
the same, your chosen name is the one we’ll use in all relevant
correspondence with you.
* Please note, however, that the product does not guarantee performance in line with your
personalised product name.
Transfers
Legislation does not currently permit transfers between
product providers.
Switching
You may change your selection of underlying unit trusts
as often as you choose without incurring a transaction fee.
However, should an asset manager charge an initial upfront
fee for investing in its unit trusts, this fee would be applied
should you switch to those unit trusts.
Cessions
Transfer of ownership of you OPN Tax Free Investment
Account will not be allowed. You may use your OPN Tax Free
Investment Account as security by way of a security cession
agreement.
Tax
Tax in product
No tax is payable on interest, dividends or realised capital
gains or losses incurred in your investment.
Tax on excess contributions
If you exceed your annual contribution limit of R33 000 on
your lifetime contribution limit of R500 000 (as stipulated in
the Income Tax Act) this will lead to a penalty of 40% on the
excess contribution amounts. This penalty will be imposed by
the South African Revenue Services (SARS) at the end of the
tax year.
Tax at death
All interest and dividends earned during the calculation of the
estate will be tax free.
Death benefits
Upon your death, your OPN Tax Free Investment Account will
form part of your estate and will be allocated through your
estate to your beneficiaries as nominated therein. The amount
within your OPN Tax Free Investment Account cannot be
transferred to your beneficiary’s tax free investment.
Do you want more information?
Visit www.ppsinvestments.co.za or contact your
PPS Investments accredited financial adviser.
Alternatively, the PPS Investments Client Service Centre is
available at [email protected] or on
0860 468 777 (0860 INV PPS), Mondays to Fridays from
08:00 to 17:00.
Withdrawals
You have unrestricted access to the savings within your OPN
Tax Free Investment Account and can make full or partial
withdrawals from the investment. However, annual and
lifetime contribution limits are capped and withdrawals cannot
be replenished.
PPS INVESTMENTS (PTY) LIMITED REG NO: 2005/029098/07
PPS HOUSE, BOUNDARY TERRACES, 1 MARIENDAHL LANE, NEWLANDS, 7700, PO BOX 44507, CLAREMONT 7735
CLIENT SERVICE: 0860 468 777 (0860 INV PPS) www.ppsinvestments.co.za
Disclaimer: OPN Personal Pension (a section of the Coronation Retirement Annuity Fund) FSB No: 12/8/37654/R (“Fund”), is registered by the Financial Services Board in terms of the Pension Funds Act, No.24 of 1956, and approved by
the South African Revenue Service. The Professional Provident Society Holdings Trust No IT 312/2011 (PPS). PPS Investments (Pty) Ltd, PPS Multi-Managers (Pty) Ltd, PPS Investment Administrators (Pty) Ltd and PPS Insurance Company
Ltd are licensed financial services providers. PPS Management Company (Pty) Ltd (RF) is a licensed collective investment scheme manager. Coronation Life Assurance Company Limited is registered in terms of the Long Term Insurance
Act 52 of 1998 to carry on long term insurance business.
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The information, opinions and any communication from the PPS Investments group, whether written, oral or implied are expressed in good faith and not intended as investment advice, neither does it constitute an offer or solicitation in
any manner. The information provided in this document is subject to the registered rules of the Fund. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect
to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes
inaccurate. In the event that specific collective investment schemes in securities (unit trusts) and/or their performance is mentioned please refer to the relevant fact sheet in order to obtain all the necessary information in regard to that
unit trust. Furthermore, all information provided is of a general nature with no regard to the specific investment objectives, financial situation or particular needs of any person. It is recommended that investors first obtain appropriate
legal, tax, investment or other professional advice prior to acting upon such information. All reference to tax is under current tax legislation. Please refer to product rules or contact a tax specialist for more information. The Fund, PPS
Investments or PPS Multi-Managers will not be held liable or responsible for any direct or consequential loss or damage suffered by any party as a result of that party acting on the basis of the information provided in any of these guides.
OPN forms part of the comprehensive PPS Investments product suite. PPS Investments and PPS Multi-Managers are only available in South Africa.