What happens if I contribute more or less than the maximum limits?

What happens if I contribute more than the maximum limits?

SARS will tax your excess contributions (i.e. the amount above the maximum limits) at a rate of 40%.

What happens if I contribute less than my annual limit?

While you won’t be penalised in any way, it’s important to remember that the unused portion of your annual limit will fall away and not get carried over to the next tax year.