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  • FIRST POST
    • justme111
    • By justme111 13th Jun 17, 1:22 PM
    • 2,683Posts
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    justme111
    Contributing to cash SIPP at 54 and withdrawing TFLS at 55
    • #1
    • 13th Jun 17, 1:22 PM
    Contributing to cash SIPP at 54 and withdrawing TFLS at 55 13th Jun 17 at 1:22 PM
    Is it possible and allowed for someone who works , basic rate tax payer, 54 now to open cash private pension plan/SIPP, contribute to it in one year and withdraw tax free 25% subsequent year? Or can it be done only once if at all?
    I am sure it has been discussed on here but as it was not relevant I must have blocked out those discussions. Thank you
Page 1
    • greenglide
    • By greenglide 13th Jun 17, 5:52 PM
    • 2,714 Posts
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    greenglide
    • #2
    • 13th Jun 17, 5:52 PM
    • #2
    • 13th Jun 17, 5:52 PM
    See this post http://forums.moneysavingexpert.com/showthread.php?t=5580163

    Once you withdraw any money over 25% TFLS you are subject to the MPAA which is currently £10,000 but is planned to be reduced.
    • justme111
    • By justme111 13th Jun 17, 10:40 PM
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    justme111
    • #3
    • 13th Jun 17, 10:40 PM
    • #3
    • 13th Jun 17, 10:40 PM
    Thank you
    20 pages of exciting reading
    I must say I scare myself - I am getting lazier and lazier at getting stuff done. Shall go through it and ask again if any questions left
  • jamesd
    • #4
    • 14th Jun 17, 7:28 AM
    • #4
    • 14th Jun 17, 7:28 AM
    You can withdraw the 25% tax free amount as often as you like provided you have some pension pot you haven't taken it from. Monthly if you like.

    If you flexibly withdraw taxable money the MPAA comes into play. You can avoid it with the small pots rule. Also watch out for the pension commencement lump sum (PCLS) recycling rule described there. The 25% tax free from a small pot isn't a PCLS.
    Last edited by jamesd; 14-06-2017 at 7:30 AM.
    • justme111
    • By justme111 14th Jun 17, 8:06 AM
    • 2,683 Posts
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    justme111
    • #5
    • 14th Jun 17, 8:06 AM
    • #5
    • 14th Jun 17, 8:06 AM
    Got to the page 4, seen that situation I descibed is different - the person works earning way more than PA so only 25% would be non taxable. With small amounts that he would put into private pension (he has occupational pension) it would not be worth to bother. Thank you all again.
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