Cashing in a small works pension

segovia

"The MPAA was originally set at £10,000 but it’s been reduced and is currently £4,000. It was created to stop people from trying to avoid tax on current earnings or gain tax relief twice, by withdrawing pension savings and then paying them straight back in again."

I understand the rationale for the above; however, if her employer wants to make a contribution after personal MPAA has been triggered then I personally don't see that as breaking any rules or have I still got it wrong? 

Dazed_and_C0nfused

segovia said:

"The MPAA was originally set at £10,000 but it’s been reduced and is currently £4,000. It was created to stop people from trying to avoid tax on current earnings or gain tax relief twice, by withdrawing pension savings and then paying them straight back in again."

I understand the rationale for the above; however, if her employer wants to make a contribution after personal MPAA has been triggered then I personally don't see that as breaking any rules or have I still got it wrong? 

The £4,000 limit includes employer contributions.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/