Quick pension question

[audi321]

I'm out of date with things these days, but if I have 2 pensions, one from an old job (dormant) and one with my current employer (actively paying into), what would happen with regards to future contributions to my current employer one if I took the tax free cash (25%) from my old dormant one?

Obviously assuming I was over age 55 and wanted to keep working and paying in as I and my employer currently do.

Does the £10k money purchase annual allowance only relate to the pension you start taking the benefit from, or both pensions? If it affects both. how would my existing pension scheme know to apply the MPAA rules?

Thanks all.

Edited by audi321 on Saturday 13th July 12:19

[Mr Pointy]

The MPAA applies to you, so limits contributions to any pensions.

[audi321]

Mr Pointy said:

The MPAA applies to you, so limits contributions to any pensions.

Thanks, I thought that might be the case, but from what I read, it's only if you start taking 'taxable income' from the pension, I'm only wanting the TFC, would that still apply?

[DoubleSix]

Correct. MPAA not triggered if just taking PCLS.

[OddCat]

Mr Pointy said:

The MPAA applies to you, so limits contributions to any pensions.

So sure and yet so wrong

[Rufus Stone]

Mr Pointy said:

The MPAA applies to you, so limits contributions to any pensions.

Don't give up the day job.

[Car bon]

You can take the 25% tax free without affecting anything else. Take even 1p of the other 75% and MPAA drops drastically though.
I'm fairly sure you could also take the 25% from the one you're currently paying into and also wouldn't affect anything .WRT future contributions

If you're in any doubt, then just ask the pension provider before taking the money.

[39sl]

100% correct.
You can take the 25% tax-free cash lump sum and put your pension pot into flexi-access drawdown, and if you don’t take any income from it the MPAA does not apply.
If the pension value is less than £10K then the MPAA doesn’t come into it.