DC Pensions - TFLS withdrawal only - Is this right?

DC Pensions - TFLS withdrawal only - Is this right?

Author
Discussion

boxedin

Original Poster:

1,479 posts

140 months

Am I understanding this correctly if:

I have two DC Pots, one is a Sal.Sac scheme, the other a SIPP and let's say each has £100K.

The SIPP doesn't receive any payments, because of the live Sal.Sac Pot which does.

If I take the 25% TFLS from the SIPP only. I can carry on making payments up to 60K into the Sal.Sac scheme?

I have intention or desire to take any income from the Pots and I want to avoid the MPAA because I'm still working and feeding the Sal.Sac scheme.

So:
I can take the 25K from the SIPP and carry on as I am?
I understand the remaining 75% in the SIPPS is moved into a new Pot, but as I have no need to take income from it. I just ignore it.

Thanks.

Rufus Stone

9,924 posts

70 months

Yes, that's correct.

Providing you do not draw any flexi-assess pension you retain your full Annual Allowance.

boxedin

Original Poster:

1,479 posts

140 months

Rufus Stone said:
Yes, that's correct.

Providing you do not draw any flexi-assess pension you retain your full Annual Allowance.
Thank you.

Notsofastfrank

232 posts

209 months

You are at risk of falling foul of the anti-recycling rules.
Please speak to an IFA before you do anything, it won’t cost you much for one-off advice.

boxedin

Original Poster:

1,479 posts

140 months

Notsofastfrank said:
You are at risk of falling foul of the anti-recycling rules.
Please speak to an IFA before you do anything, it won t cost you much for one-off advice.
How? - the 25% is being spent.

Sheepshanks

37,005 posts

133 months

boxedin said:
How? - the 25% is being spent.
It'll be OK if you don't increase your pension contributions much (or at all) compared to what you've been paying in.