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Tax free pension allowance?
Tight_Fart
Posts: 77 Forumite
When starting a drawdown account & transferring funds from your pension is it
(And we'll call the pot £100k)
A, you can take up to 25% tax free then, or
B, the 25% can be taken any time. But only one withdrawal.
C, you have £25k tax free that could be withdrawn in dribs & drabs
D, should the pot grow to £200k and you've not taken any cash tax free you could then take £50k?
(And we'll call the pot £100k)
A, you can take up to 25% tax free then, or
B, the 25% can be taken any time. But only one withdrawal.
C, you have £25k tax free that could be withdrawn in dribs & drabs
D, should the pot grow to £200k and you've not taken any cash tax free you could then take £50k?
0
Comments
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A & C are correct.
D is also correct but the pension wouldnt be in drawdown prior to that. So, using the typical multi-choice approach or which answer is most correct (and lets not forget the usual double negatives multi-choice questions/answers like to use!), then A&C are the most correct.
B could have been correct had you not added "But only one withdrawal."I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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OP
It then depends on if your provider will allow some or all of the allowable options! Then what their charges will be for those!
It might cause you to think again on what you want to do.0 -
If they don't, then change.OP
It then depends on if your provider will allow some or all of the allowable options! Then what their charges will be for those!
It might cause you to think again on what you want to do.
It appears rare that the best provider in accumulation is also the most appropriate in decumulation.0
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