Confused by annual allowance carry forward rules

lake888

My existing one is a DB but I have contributed separately to a DC one. Does it make any difference?

zagfles

lake888 said:

My existing one is a DB but I have contributed separately to a DC one. Does it make any difference?

No, For the AA, get your PIAs for both DB and DC schemes and use an AA calculator as above. Sounds like you've done that are are OK.

For the tax relief limit, just make sure you've not contributed more than 100% of earnings. For instance if your salary was £44k and you contributed £2k towards the DB scheme, leaving £42k taxable income, then you can only get tax relief on £42k gross of contributions, ie £33.6k net to a personal pension eg a SIPP. If you put more in by mistake you can get a refund of the excess.

lake888

Thanks. Regarding PIA for the DC scheme, I believe it is the contribution that I have made i.e. £42000?. 

zagfles

lake888 said:

Thanks. Regarding PIA for the DC scheme, I believe it is the contribution that I have made i.e. £42000?. 

Yup, gross contribution.

jamesd

It is OK to go over earnings by mistake or just to be sure you used the maximum with variable income. When you know your actual income just tell the pension firm and ask for a Refund of Excess Contributions Lump Sum and the net excess will be returned to you.