DC Pensions - TFLS withdrawal only - Is this right?
DC Pensions - TFLS withdrawal only - Is this right?
Author
Discussion

boxedin

Original Poster:

1,555 posts

150 months

Friday 27th June 2025
quotequote all
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

12,146 posts

80 months

Friday 27th June 2025
quotequote all
Yes, that's correct.

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

boxedin

Original Poster:

1,555 posts

150 months

Friday 27th June 2025
quotequote all
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

273 posts

219 months

Friday 27th June 2025
quotequote all
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:

1,555 posts

150 months

Friday 27th June 2025
quotequote all
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

39,386 posts

143 months

Friday 27th June 2025
quotequote all
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.