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Lump sum at 55 but not retiring?
Bunker
Posts: 28 Forumite
If I want to take my full 25% lump sum tax free from my SIPP at 55 (in 6 years) to pay off the mortgage etc. do I have to start a separate SIPP for further pension contributions until I retire at 60?(Say). Are the new contributions also eligible for lump sum tax free as well?
How do you demonstrate that you are not recycling but making contributions from income and is there a limit to how much you can contribute if you have taken a lump sum earlier?
How do you demonstrate that you are not recycling but making contributions from income and is there a limit to how much you can contribute if you have taken a lump sum earlier?
0
Comments
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If your provider allows this you can do it, but many wont so you would need to open another pension.
If you keep the same contributions as before, there would be no suggestion of recycling.
If you take ANY income over the 25% you would have your contributions limited to 10K per annum.0
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