Non-tax payer paying more than 2880 into pension?

pip895

Isa would be a lot better - remember you are going to potentially have to pay tax on 75% of what you take out of the SIPP. The ISA is tax free.

michaels

Thanks Redux for your input.

pip895 wrote: »

Isa would be a lot better - remember you are going to potentially have to pay tax on 75% of what you take out of the SIPP. The ISA is tax free.

The drawdown will not be taxed, pot will never go over 50k and will be drawn down slowly enough to avoid tax. Inflexibility of the pension vs isa may help with spending discipline and drawdown is only a few years away anyway.

redux

Have you seen other threads where some people discuss non-taxpayers paying in £2880 and drawing out most of £3600, each year?

pip895

michaels wrote: »

The drawdown will not be taxed, pot will never go over 50k and will be drawn down slowly enough to avoid tax. Inflexibility of the pension vs isa may help with spending discipline and drawdown is only a few years away anyway.

If you can't count on yourself not taking cash out of an ISA are you sure you can guarantee your going to be disciplined and not take too much out of your SIPP and end up paying unnecessary tax??

I'd put it in a S&S Isa and mentally mark it down as tax paid SIPP - gives you a bit of extra flexibility - just in case.