Pensions/drawdown etc Pensions/drawdown etc
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  1. #1

    Ddraig Goch


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    Default Pensions/drawdown etc

    OK. Getting to that age now.... Yeh really.

    At 55, I can withdraw 25% tax free yeh? BUT, after you've done this there are limits as to how much you can contribute.

    I've currently got a SIPP, one or two other old pensions, and a current one via the umbrella. If I drawdown on part of the SIPP does this affect how much I can contribute to the others?

    Surely this must the case? Otherwise you could draw down on one SIPP and then just open another one to avoid contribution limits?
    Rhyddid i lofnod psychocandy!!!!

  2. #2

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    You can draw your 25% and it won't trigger money purchase annual allowance (MPAA). Take even 1p more than the 25% and the MPAA is triggered.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
    Officially CUK certified - Thick as f**k.

  3. #3

  4. #4

    Contractor Among Contractors


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    Default

    Duplicate

  5. #5

    Should post faster


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    Default

    Quote Originally Posted by Fred Bloggs View Post
    You can draw your 25% and it won't trigger money purchase annual allowance (MPAA). Take even 1p more than the 25% and the MPAA is triggered.
    ... unless you can make use of the Small Pots rule.

  6. #6

    Ddraig Goch


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    Default

    Quote Originally Posted by Wary View Post
    ... unless you can make use of the Small Pots rule.
    wtf?
    Rhyddid i lofnod psychocandy!!!!

  7. #7

    Default

    Quote Originally Posted by Wary View Post
    ... unless you can make use of the Small Pots rule.
    You can only do that three times and each time it is limited to £10,000. As per normal drawdown, £25% of it is tax free with the rest taxed at your marginal income tax rate.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
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  8. #8

    Ddraig Goch


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    Quote Originally Posted by Fred Bloggs View Post
    You can draw your 25% and it won't trigger money purchase annual allowance (MPAA). Take even 1p more than the 25% and the MPAA is triggered.
    OK. Say for the sake of argument I've got 3 old pensions, 1 SIPP with nothing going in, and one active pension with loads going it. Can I take 25% out of each?

    For the SIPP, nothing else is ever likely to go in there. Can I take more than 25% or are we getting into the territory of paying tax then? Since I'm still working....
    Rhyddid i lofnod psychocandy!!!!

  9. #9

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    Quote Originally Posted by psychocandy View Post
    OK. Say for the sake of argument I've got 3 old pensions, 1 SIPP with nothing going in, and one active pension with loads going it. Can I take 25% out of each?

    For the SIPP, nothing else is ever likely to go in there. Can I take more than 25% or are we getting into the territory of paying tax then? Since I'm still working....
    1 Yes.

    2 Yes you can, but it triggers the MPAA that you alluded to in your first post. If you intended paying more into any SIPP, you really mustn't trigger MPAA.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
    Officially CUK certified - Thick as f**k.

  10. #10

    Godlike

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    Quote Originally Posted by Fred Bloggs View Post
    You can draw your 25% and it won't trigger money purchase annual allowance (MPAA). Take even 1p more than the 25% and the MPAA is triggered.
    I cannot find anything that points to the 25% trigger for MPAA.
    I'm sure you're right but where do I find it?
    See You Next Tuesday

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