Understanding SIPP carry forward

zagfles

jamesd wrote: »

For a defined benefit pension it's not the amount paid in that matters for the annual allowance calculation, it's the increase in benefit value. So someone might pay in say £5,000 but get a raise of £3,000 and that raise could have a bigger effect on the final salary or average salary than just the amount paid in during the year.

Yes but in the OP's case the AA isn't the issue, there's no way she would exceed it, it's the tax relief limit of 100% of earnings that's the issue. So the PP from the OP is correct.

dunroving

zagfles wrote: »

Yes but in the OP's case the AA isn't the issue, there's no way she would exceed it, it's the tax relief limit of 100% of earnings that's the issue. So the PP from the OP is correct.

The different factors contributing to AA, vs. contributing to "maximum allowed personal contribution" (which in my case is 100% earnings, and buoyed by carryover allowance) were what was getting me confused.


Also, the fact that the tax year and eth Paying In Period are slightly different.