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Pension Contributions
PensionSort
Posts: 14 Forumite
My husband was thinking of making a payment into my pension.
Is this allowed and how does it effect the amount he can pay into his own pension?
Thanks
Is this allowed and how does it effect the amount he can pay into his own pension?
Thanks
0
Comments
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Fundamentally you can put money into your pension from household funds. You will be limited by how much you earn. That will not affect what he can put in his own.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Yes, it's allowed, and it has no affect how much he can pay into his.
The only restrictions are based on what's already been contributed to your own pension (which I'm assuming, since you're asking, is otherwise nil) so as far as your pension pot goes, you're/he's limited to the greater of
- £3,600 gross if you're not earning
- your gross wage if you areConjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Your husband putting money into your pension has exactly the same effect as him giving you the money and you paying it in. He gets no tax benefit.0
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Yes, third-party payments are allowed. However, most couples have a joint account and it isn't a third party payment when that is the case.how does it effect the amount he can pay into his own pension?
it doesnt.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 -
But if I set up a SIPP for OH and pay into it from my own or a joint account, is that any different to paying in from her own account?However, most couples have a joint account and it isn't a third party payment when that is the case.0 -
no. The amount going in to SIPP is limited by the person it belongs to. Source of funds doesn't matterI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
But if I set up a SIPP for OH and pay into it from my own or a joint account, is that any different to paying in from her own account?
joint account doesn't matter as the OH is party to the joint account.
payment from your account technically makes it a third party payment but most providers are relaxed on that. Especially on direct bank transfers. Whether this changes with the introduction of name matching on bank transfers we will have to wait and see. I suspect surname matches will still be fine.
However, as mentioned above the source of funds (in respect of account being drawn on) has nothing to do with the annual contribution allowance.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 -
If it is any use to readers, I can confirm that Charles Stanley Direct definitely take notice of account names. A few months ago, I made a transfer from our joint bank account to my partners SIPP. What I did not know, was that under my login, the bank only send my name with the transfer and not my partners. I had to email proof to CSD that it was a joint account and now they accept payments from that account.payment from your account technically makes it a third party payment but most providers are relaxed on that. Especially on direct bank transfers.0
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