Transfer To A SIPP After UFPLS Payment

nunman

I have a SIPP and another defined contribution pension.

At some point I'll want to transfer my other defined contribution pension into my SIPP.

If I take a first UFPLS payment from the SIPP can this affect the transfer of my DC pension at a later time?...or would it take place just the same as if a UFPLS hadn't taken place?

I'm guessing UFPLS payment(s) shouldn't matter on future pension transfers into the SIPP...

tacpot12

I'm not aware of any impact that taking an UFPLS payment from a SIPP should prevent a further transfer in. Taking an UFPLS payment will result the SIPP becoming subject to the lower level of the Money Purchase Annual Allowance of £4000, but this only limits the amount of tax relief you can receive on new contributions to the SIPP, a transfer in does not attract any tax relief as relief was already given when the contributions were made to the original pension.

nunman

Thanks. That is how I think it should work too. A transfer from one registered pension scheme to another registered pension scheme is a recognised transfer, so not a new contribution...and so shouldn't be limited by the MPAA £4K limit introduced by taking the UFPLS by the SIPP. Would be nice to see that officially documented somewhere. Pretty sure I'm not the first one that has wanted to do this.