Drawdown at 55 - what if you have 2 (or more) pension pots

[Deleted User]

Can you take 25% from each of them? (I've got a main SIPP which I know I can drawdown and another smaller pot that I never transferred in to the SIPP).

Also, I'm right there no tax as long as its 25% max?
And I can still make the same contributions into the SIPP afterwards?

NoMore

Yes you can take a 25% Tax free lump sum for both and yes it will be tax free (its in the name)

For future contributions as long as you only take the tax free money your fine, however as soon as you take any taxable income you will trigger the MPAA and future contributions to your DC schemes will be limited to 4k per year.

Also no tax is not the same as tax free. Depending on your other incomes and your Personal allowance you could take more money from your pension and pay no tax, but is not tax free. However this would trigger the MPAA above as its taxable income just taxed at 0%.

Albermarle

No problem to take 25% tax free from both. Often a good question is why would you want to do that? If you need the money for something specific, fine, but otherwise usually best left where it is in the pension.

Marcon

NoMore said:

For future contributions as long as you only take the tax free money your fine, however as soon as you take any taxable income you will trigger the MPAA and future contributions to your DC schemes will be limited to 4k per year.

If you access the funds 'flexibly' it will trigger the MPAA. If you use them to buy an annuity, that won't trigger the MPAA.

NoMore

Marcon said:

NoMore said:

For future contributions as long as you only take the tax free money your fine, however as soon as you take any taxable income you will trigger the MPAA and future contributions to your DC schemes will be limited to 4k per year.

If you access the funds 'flexibly' it will trigger the MPAA. If you use them to buy an annuity, that won't trigger the MPAA.

buying an annuity isn't taking taxable income