Paying £2880 into pension when retired

ezhiki

Got it, many thanks.

molerat

molerat said:

WBCPB said:

I have just opened my first cash SIPP with H & L, i spoke to customer service via telephone before i did the deposit and was also advised that the minimum funding requirement needed to keep the account open in year 1 and going forward would be £50.
Regards

Would be nice if they put that in writing somewhere.  All their documentation still states £1K.

Thank you for your email.
I can confirm the minimum amount required to keep your HL SIPP open is £50.
I have raised the fact that our documentation still states the previous figure of £1,000 to the relevant team and have asked that this be looked into as a priority.
I apologise for any confusion this may have caused you.
If you have any other questions, please get back to me.
Kindest Regards
xxxxx

Hargreaves Lansdown

WBCPB

In 1st year when HMRC have added the tax relief bringing the total in the fund to £3,600,do i take the 25% TFLS from £3,600 or from £3,550 ( £3,600 - £50 minimum funding amount )? 
Regards

molerat

If you are doing the annual £2880 in and UFPLS down to the minimum £50 then in the first year you withdraw £3550 of which £887.50 is the 25% tax free and £2662.50 is subject to tax. It may be worth doing a smaller withdrawal first, below £1389.90, so that no tax is deducted under the emergency 1250M1 code and HMRC issue a cumulative tax code to be used on future payments.

trickydicky14

molerat said:

molerat said:

WBCPB said:

I have just opened my first cash SIPP with H & L, i spoke to customer service via telephone before i did the deposit and was also advised that the minimum funding requirement needed to keep the account open in year 1 and going forward would be £50.
Regards

Would be nice if they put that in writing somewhere.  All their documentation still states £1K.

Thank you for your email.
I can confirm the minimum amount required to keep your HL SIPP open is £50.
I have raised the fact that our documentation still states the previous figure of £1,000 to the relevant team and have asked that this be looked into as a priority.
I apologise for any confusion this may have caused you.
If you have any other questions, please get back to me.
Kindest Regards
xxxxx

Hargreaves Lansdown

I sent the same question to HL and also got the same answer as you but I did not get the xxxx Kissy Kissy bit at the end of the email.
I can only think you have a bigger account then I have!!!

molerat

Rob749 said:

I'm in the same situation, as long as her income doesn't exceed her reduced tax allowance, there's no problem, she can still draw the whole amount tax free.

I have worked out that we are better off with me having her 10% even though she will pay some tax on her SIPP.  She will be paying £136 tax but I save £250 - every little helps as they say

Dazed_and_C0nfused

molerat said:

Rob749 said:

I'm in the same situation, as long as her income doesn't exceed her reduced tax allowance, there's no problem, she can still draw the whole amount tax free.

I have worked out that we are better off with me having her 10% even though she will pay some tax on her SIPP.  She will be paying £136 tax but I save £250 - every little helps as they say

Will you be giving Mrs molerat £136 of your £250 though 

molerat

Dazed_and_C0nfused said:

molerat said:

Rob749 said:

I'm in the same situation, as long as her income doesn't exceed her reduced tax allowance, there's no problem, she can still draw the whole amount tax free.

I have worked out that we are better off with me having her 10% even though she will pay some tax on her SIPP.  She will be paying £136 tax but I save £250 - every little helps as they say

Will you be giving Mrs molerat £136 of your £250 though 

Nope, she gets a lot more than that from her class 3s I paid for

vixen1500

My part-time earnings will use up my annual tax allowance this year.  So just wondering if I will have to pay to tax on the full £4500 I withdrew from my SIP, or is 25% tax free.
Thanks 

vixen1500

j.p said:

You have already been given the answer to that:
https://forums.moneysavingexpert.com/discussion/comment/77789694/#Comment_77789694

Thanks, thought I might of,  but couldn't remember