Drawdown Pension Withdrawl question

[RESSE]

I am failing to get my head around withdrawals from a drawdown pension plan.

Can anyone offer guidance or source of information?

Drawdown income has been taken for a few years, but could 50% of the fund be withdrawn and paid into a Trustee Bank Account without incurring a tax charge?

Thank you in advance.

[PurpleMoonlight]

RESSE said:

Drawdown income has been taken for a few years, but could 50% of the fund be withdrawn and paid into a Trustee Bank Account without incurring a tax charge?

Thank you in advance.

I think you may be confusing drawdown with investment.

Even while a member is taking pension via drawdown the trustees remain responsible for the ongoing investment of the members assets within the pension scheme. So yes, they could encash 50% of all the members assets to the trustees bank account if appropriate.

What type of pension scheme is this?

[RESSE]

The pension plan is a SSAS and I think I am correct is saying a 50% withdrawal can be taken and invested in other assets within the pension wrapper without incurring tax charge?

I sort of understand it!

[PurpleMoonlight]

RESSE said:

The pension plan is a SSAS and I think I am correct is saying a 50% withdrawal can be taken and invested in other assets within the pension wrapper without incurring tax charge?

I sort of understand it!

If it's a SSAS then all the trustees must agree to all investments, and that includes disinvestments. I presume you are a trustee.

There are no tax charges on investment restructuring within the SSAS and there is no limit to the proportion that can be restructured as such. All the assets could be moved from AVIVA to Prudential for example.

There is a 50% limit for loans to the principal employer and this might be where your confusion arises.

[RESSE]

PurpleMoonlight said:

If it's a SSAS then all the trustees must agree to all investments, and that includes disinvestments. I presume you are a trustee.

There are no tax charges on investment restructuring within the SSAS and there is no limit to the proportion that can be restructured as such. All the assets could be moved from AVIVA to Prudential for example.

There is a 50% limit for loans to the principal employer and this might be where your confusion arises.

Thank you for the reply (most helpful).