40k annual allowance

NottinghamKnight

Mick70 said:

Anonymous101 said:

To answer the query, yes you're assumption on how the carry forward works is correct as far as I understand it.
As you're well below the £40k in 2019/20 you've essentially generated £25k headroom over the next 3 years. Of course 18/19 and 17/18 may have also generated some additional headroom.

Whether or not you're better contributing the savings is another matter entirely and much more difficult to answer without knowing much more about your situation. Age, income, retirement plans, levels of current savings, investments and pensions all play a part in answering that.

there were no prior years as I was in a final salary pension scheme then . thanks for taking time to reply

Mick

Are you sure that disallows carry forward, my reading of the rules is that you just have to be a member of a pension scheme.

jamesd

Mick70 said:

there were no prior years as I was in a final salary pension scheme then 

Prior years are available to you because you get them if you have any pension, active or inactive, except state pension. The DB scheme should have told you the pension input amount to deduct from each years 40k.

Mick70

NottinghamKnight said:

Mick70 said:

Anonymous101 said:

To answer the query, yes you're assumption on how the carry forward works is correct as far as I understand it.
As you're well below the £40k in 2019/20 you've essentially generated £25k headroom over the next 3 years. Of course 18/19 and 17/18 may have also generated some additional headroom.

Whether or not you're better contributing the savings is another matter entirely and much more difficult to answer without knowing much more about your situation. Age, income, retirement plans, levels of current savings, investments and pensions all play a part in answering that.

there were no prior years as I was in a final salary pension scheme then . thanks for taking time to reply

Mick

Are you sure that disallows carry forward, my reading of the rules is that you just have to be a member of a pension scheme.

if i was member of the dc scheme in 2019/20 and only paid in 15k , does that in itself not trigger the 3 year cfwd rule so that I can pay extra into 2020/21  2021/22  and 2022/23 though ?

Mick70

jamesd said:

Mick70 said:

there were no prior years as I was in a final salary pension scheme then 

Prior years are available to you because you get them if you have any pension, active or inactive, except state pension. The DB scheme should have told you the pension input amount to deduct from each years 40k.

hi James , hope you well , does that mean I should contact my old db scheme to ask what unused allowance i have for 2017/18   and 2018/19 ?
thanks
mick

NottinghamKnight

Mick70 said:

NottinghamKnight said:

Mick70 said:

Anonymous101 said:

To answer the query, yes you're assumption on how the carry forward works is correct as far as I understand it.
As you're well below the £40k in 2019/20 you've essentially generated £25k headroom over the next 3 years. Of course 18/19 and 17/18 may have also generated some additional headroom.

Whether or not you're better contributing the savings is another matter entirely and much more difficult to answer without knowing much more about your situation. Age, income, retirement plans, levels of current savings, investments and pensions all play a part in answering that.

there were no prior years as I was in a final salary pension scheme then . thanks for taking time to reply

Mick

Are you sure that disallows carry forward, my reading of the rules is that you just have to be a member of a pension scheme.

if i was member of the dc scheme in 2019/20 and only paid in 15k , does that in itself not trigger the 3 year cfwd rule so that I can pay extra into 2020/21  2021/22  and 2022/23 though ?

Yes but carry forward should also be available for previous years as well if you were a member of any scheme, including db. The convention is that current year is used fully, then the oldest of the available carry forward years so this should give some extra allowance; as you say above probably best to contact your old scheme to confirm how much was used by the db scheme if you have't been advised previously as it can be a complicated calculation.