Taking TFC

okydoky

I am about to transfer a dc pension to my SIPP which is already in drawdown.

I wish to take the 25% TFC so my question is, should I take it first and transfer the crystallised funds over, or transfer the lot and ask my SIPP provider to pay me the TFC?

Or does it make no difference at all?

Thanks in anticipation.

jamesd

Two differences:

1. Transfer rules normally prohibit combining pots in drawdown. If you want to keep the pots apart so you can move money into different pension funds later you might prefer to take benefits before you transfer. If you want them combined, most providers have opted to combine when new money is put into drawdown with them, which would produce one drawdown pot if you transferred first.
2. Charges can be different.

The first case was of some interest when there could be different GAD calculation dates for each pot, allowing timing of commencing drawdown to be used to stagger the GAD calculation time and reduce the variation in income.