Residual AVCs

Tom2023

Once I have taken my TFLS I will have some money left in my AVC account.

Can this be transferred to a SIPP or do I have to take the money out paying my tax on it?

Thanks in advance for any advice.

robin61

Tom2023 wrote: »

Once I have taken my TFLS I will have some money left in my AVC account.

Can this be transferred to a SIPP or do I have to take the money out paying my tax on it?

Thanks in advance for any advice.

I think you will find that it depends on your pension scheme. With my company you can buy an annuity, take it as a lump sum (UFPLS) so here you get 25% tax free and the rest is taxable or if it's less than £5k we can buy some extra pension with it. Transferring it to a SIPP isn't allowed.

There should be something in your scheme rules that covers the options.

marlot

As I recall, the scheme I have with avcs allows me to use the residual to...

• Take as a lump sum (taxed)
• Buy an annuity or
• Transfer to another pension

When I got a pension forecast, it's all on the paperwork.

dunstonh

Once I have taken my TFLS I will have some money left in my AVC account.

Will the AVC allow income drawdown? (most AVCs do not).

robin61

marlot wrote: »

As I recall, the scheme I have with avcs allows me to use the residual to...

• Take as a lump sum (taxed)
• Buy an annuity or
• Transfer to another pension

When I got a pension forecast, it's all on the paperwork.

I think you need to get hold of the scheme booklet. Some schemes including the one I am in treat the whole AVC and residual AVC differently and this often causes confusion. Out of interest which Company ?

greenglide

and some schemes will actually let you do things which are not in the scheme booklet.

Mine allowed the residual AVCs to be taken as an UFPLS even though the booklet didnt offer this. It saved the clart of a transfer out.

As long as it doesnt cost them anything then they "can" sometimes be flexible.