NEW BLOG. Featuring tips and pics from pet owners of the MSE Forum, we present to you Homemade pet toy ideas. Take a look
Money moved to drawdown - is investment growth of the 75% taxable portion, taxable?
edited 10 February at 11:41AM in Pensions, annuities & retirement planning
15 replies 1K views
Latest MSE News and Guides
Energy Price Cap change
Martin Lewis on what it means for youMSE News
Best £1 you've ever spent?
Share your most impressive bargainsMSE Forum
New MSE Forum avatars available
Try 'em out nowMSE Forum
However the LTA will stop you getting any more Tax free at some point.
Any uncrystallized part of a pot is automatically crystallzed at age 75 and there will be a LTA tax charge on anything above the LTA.
It can in some instances be better to crystallize the pot earlier and withdraw the funds paying 20% income tax and putting it into ISAs and investing it in the same investments that the pension used - to avoid the 25% LTA tax charge. This can avoid a LTA tax charge but will have the downside of being inside IHT unlike the pension.
This is why some choose to crystallize the lot when their pot hits £1m.