Mibfa Payout Dates

The timeframe for receiving your provident fund payout from MIBFA can vary based on several factors, including the completeness of your documentation and the accuracy of your tax records. Generally, you can expect the following:

  • Standard Processing Time: Between 4 and 16 weeks. ​

  • Factors Influencing Processing Time:

    • Completeness of required documents.

    • Accuracy of your tax affairs.

    • Internal processing times at MIBFA.​

 Required Documents for Withdrawal

To initiate the withdrawal process, ensure you have the following documents ready:

  • Completed Application for Withdrawal Benefit Form (signed and dated in the presence of a Human Resources official). ​

  • Certified copy of your Identity Document.​

  • Signed Bank Mandate Form.

  • Certificate of Service from your employer.​

These documents should be submitted to your employer’s HR department, who will forward them to MIBFA on your behalf.​

 Tax Implications on Provident Fund Withdrawals

When withdrawing your provident fund, the South African Revenue Service (SARS) applies a tax on the lump sum based on the following withdrawal tax table:

  • First R25,000: Tax-free.

  • R25,001 to R660,000: Taxed at 18%.​

  • R660,001 to R990,000: Taxed at 27%.​

  • Above R990,000: Taxed at 36%.​

It’s important to note that these rates apply to the portion of your withdrawal within each bracket. For instance, if you withdraw R700,000, the first R25,000 is tax-free, the next R635,000 is taxed at 18%, and the remaining R40,000 is taxed at 27%.

 Options Beyond Cash Withdrawal

If you prefer not to take a cash lump sum, you have alternative options:

  • Transfer to Another Retirement Fund: You can transfer your funds to a new employer’s retirement fund or a preservation fund without incurring immediate tax.

  • Purchase an Annuity: Use your fund credit to purchase a monthly pension from an approved insurance company.

These options allow your retirement savings to continue growing and can provide long-term financial security.​

 Contacting MIBFA for Assistance

For personalized assistance or to check the status of your withdrawal, you can contact MIBFA directly:

  • Phone: 0860 102 544​

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