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tax-free pension withdrawal and paying into pension later
nb0825
Posts: 115 Forumite
A family member of mine is nearing 55. He wants to take 25% of his pension tax-free when he hits 55, but continue to pay into the pension via monthly contributions until he retires. Can he make any further tax-free withdrawals after the first withdrawal at 55?
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Comments
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Yes; 25% of his further contributions.
If it's an employer's scheme he needs to check that it permits what he wants to do.Free the dunston one next time too.0 -
A family member of mine is nearing 55. He wants to take 25% of his pension tax-free when he hits 55, but continue to pay into the pension via monthly contributions until he retires. Can he make any further tax-free withdrawals after the first withdrawal at 55?
If he takes 25%, any further withdrawals will be treated as income and taxed at the rate appropriate to his circumstances.
If he makes withdrawals on top of the 25%, he should check whether this applies.
https://www.aegon.co.uk/news/news-articles/money-purchase-annual-allowance.html0
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