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Trivial Commutation 30k Limit
hatnezmaturestudent
Posts: 40 Forumite
Hi all, I retired from Royal Mail in 2015 on pension of £600 a month. From December 2020, I have another DC pension with Trivial Commutation of £28,000. I am aware of 30k limit and that if I took £28000 lump sum it wouldn't be tax free. My question is; Does my £600-a-month Royal Mail pension count towards the 30k limit£ As if it does I wouldn't be able to cash it in!
With thanks
With thanks
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Comments
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Do you mean another DB pension, rather than DC? If so, then the £30K limit does indeed apply to all pensions (other than the State pension) so, no, you won't be able to cash it in.
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From December 2020, I have another DC pension with Trivial Commutation of £28,000.
Can you confirm you mean a DC pension as you are using the phrase Trivial commutation and that does not apply to DC schemes.
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 -
Yes sorry. Its DB pension. Thank you.1
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You mention £28,000 - this is the CETV?
Are you still an active member of a pension scheme? If so, DB or DC?
Have you reached state pension age?
If not, have you obtained a state pension forecast?
https://www.gov.uk/check-state-pension
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To answer your question: yes, it does count towards the £30K limit and you won't be able to trivially commute this other DB pension.hatnezmaturestudent said:Hi all, I retired from Royal Mail in 2015 on pension of £600 a month. From December 2020, I have another DC pension with Trivial Commutation of £28,000. I am aware of 30k limit and that if I took £28000 lump sum it wouldn't be tax free. My question is; Does my £600-a-month Royal Mail pension count towards the 30k limit£ As if it does I wouldn't be able to cash it in!
With thanks1 -
As it is under £30,000 it can be transferred to a DC pension, without having to take financial advice, and then cashed in as and when required.Dox said:
To answer your question: yes, it does count towards the £30K limit and you won't be able to trivially commute this other DB pension.hatnezmaturestudent said:Hi all, I retired from Royal Mail in 2015 on pension of £600 a month. From December 2020, I have another DC pension with Trivial Commutation of £28,000. I am aware of 30k limit and that if I took £28000 lump sum it wouldn't be tax free. My question is; Does my £600-a-month Royal Mail pension count towards the 30k limit£ As if it does I wouldn't be able to cash it in!
With thanks1
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