Stakeholder pension: drawdown and pay in

big_mortgage

Thank you all for your previous replies and apologies to resurrect a previous thread, however it is related.

I am hoping to help someone (under 75) transfer the mentioned Scottish Widows stakeholder to a SIPP so some of the money can be drawn down.

I assume it is still possible to contribute to/ open another stakeholder, or indeed a SIPP, until 75? I am aware the limit then becomes £4,000 per year and that is not an issue.

Regarding the choice of whether to take a 25% tax free lump sum upfront, or having the first 25% of each draw down payment tax free: would this have to be the same choice for the second/ subsequent transfer (to a SIPP) later on or can it be different?

In addition, we are looking to transfer a shares (accumulation) ISA to produce some form of monthly income. So an income ISA I guess. Can these provide a regular monthly income? I suspect having done some initial research that the income generated by these is variable (in amount and timings) due to the nature of dividend payments?

For reference, these are relatively small sums here, c£10k for the stakeholder/ SIPP and c£20k for the ISA.

I have seen that Fidelity do not charge for withdrawals or for switching funds so this is attractive. It means that the SIPP can be controlled slightly better as SIPP funds can transferred from an income one to a growth one if required.

Is there any other fund providers that look good in this circumstance or any other things that should be considered?

kidmugsy

For a SIPP containing modest amounts (like mine; like yours) Hargreaves Lansdown are pretty good. You can both contribute and withdraw if you want to. The money will end up in two semi-detached "accounts" with them. One contains money that's been untouched. The other contains money that has had its TFLS withdrawn, and possibly taxable income withdrawn too.

They offer a modest "reward" for transferring in: you might like to check the terms and the length of the window of opportunity.

HL seem to me to be a little pricey for ISAs. You could check the tables at monevator.
http://monevator.com/compare-uk-cheapest-online-brokers/

big_mortgage

kidmugsy wrote: »

For a SIPP containing modest amounts (like mine; like yours) Hargreaves Lansdown are pretty good. You can both contribute and withdraw if you want to. The money will end up in two semi-detached "accounts" with them. One contains money that's been untouched. The other contains money that has had its TFLS withdrawn, and possibly taxable income withdrawn too.

They offer a modest "reward" for transferring in: you might like to check the terms and the length of the window of opportunity.

HL seem to me to be a little pricey for ISAs. You could check the tables at monevator.
http://monevator.com/compare-uk-cheapest-online-brokers/

That's interesting- though not worth the reward at that amount.

big_mortgage

big_mortgage wrote: »

Regarding the choice of whether to take a 25% tax free lump sum upfront, or having the first 25% of each draw down payment tax free: would this have to be the same choice for the second/ subsequent transfer (to a SIPP) later on or can it be different?

In addition, we are looking to transfer a shares (accumulation) ISA to produce some form of monthly income. So an income ISA I guess. Can these provide a regular monthly income? I suspect having done some initial research that the income generated by these is variable (in amount and timings) due to the nature of dividend payments?

For reference, these are relatively small sums here, c£10k for the stakeholder/ SIPP and c£20k for the ISA.

Is there any other fund providers that look good in this circumstance or any other things that should be considered?

Any advice on ISAs or is this a correct assumption? Also how about the choice between taking a tax free lump some from 2 SIPPs, does this become an independent choice fixed to each SIPP, or would one have to be the same as the first choice?

Brynsam

You can have different choices for different SIPPs.

AnotherJoe

big_mortgage wrote: »

Any advice on ISAs or is this a correct assumption? Also how about the choice between taking a tax free lump some from 2 SIPPs, does this become an independent choice fixed to each SIPP, or would one have to be the same as the first choice?

Each SIPP is treated wholly independently. Which means BTW that the 25% whether as one lump sum or within each withdrawal, is counted from each SIPP by itself, not across them in aggregate.

Ps there's one exception to the "independently" condition. Once you've withdrawn some taxable payments, you need to inform all pension providers.