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Could I take out a SIPP if I’ve already cashed in another pension?
Tight_Fart
Posts: 77 Forumite
At the moment I might be considered asset rich and cash poor.
I own property that is let and have 2 pensions, one is due to mature shortly, (at age 60)
I was thinking in a year or so selling a property and starting a SIPP by maxing my allowance over a couple of years, £40k a year.
Could I still do this if I’ve already started to draw from another pension?
I own property that is let and have 2 pensions, one is due to mature shortly, (at age 60)
I was thinking in a year or so selling a property and starting a SIPP by maxing my allowance over a couple of years, £40k a year.
Could I still do this if I’ve already started to draw from another pension?
0
Comments
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Pension contributions are limited to annual relevant income, which in the majority of cases means earned income. Are you earning the salary to cover that level of contributions?
Nothing stopping you opening another pension, if a non-earner, limit is £2880 net which will be topped up to £3600 a year.0 -
Could I still do this if I’ve already started to draw from another pension? [/QUOTE
If you are taking pension income from an annuity or a final salary scheme, then there is no specific restriction on new pension contributions .
If you are taking any income/lump sum from a drawdown arrangement ( apart from the 25% tax free part) then you will be limited by the £4k MPPA0 -
I was thinking in a year or so selling a property and starting a SIPP by maxing my allowance over a couple of years, £40k a year.
Do you have earned income in excess of £40,000
What method have you used for drawing the existing pension? (annuity, capped drawdown, flexi-accessdrawn or a scheme pension)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 -
Albermarle wrote: »Could I still do this if I’ve already started to draw from another pension? [/QUOTE
If you are taking pension income from an annuity or a final salary scheme, then there is no specific restriction on new pension contributions .
If you are taking any income/lump sum from a drawdown arrangement ( apart from the 25% tax free part) then you will be limited by the £4k MPPA
Unless using small pots which dont invoke MPAA and also use up 0% LTA.0
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