Can you transfer capital from a retirement annuity to a living annuity?

As I have it, one can only add funds to a living annuity from certain retirement sources. One of these is a retirement annuity (RA). The attraction of a living annuity (that you only draw the minimum annuity from) is that this capital is entirely outside estate duty and is almost immediately available to nominated beneficiaries, who in turn can carry on with it and nominate new beneficiaries. The income of the living annuity is also not taxed, only the annuity.

So, in a way, a DIY trust … So, could one, provided in the right age category, make large RA contributions for a few years, then ‘retire’ from that RA and, on retirement, transfer that capital to an existing or new living annuity? Where it gets unclear is what happens to one’s unused RA income tax deductions. For example, if the formula limits your 2024 to 2030 RA deductions to R250 000, but you contributed R600 000 per year, you’d have almost R2.5 million of carried-forward RA deduction

Retirement Annuity Living Annuity Capital Transfer Income Tax Deductions

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