Paying and drawing at the same time
in Pensions, annuities & retirement planning
5 replies 227 views
I already draw a workplace pension every month and also pay into another workplace pension , can i pay more into the new one ? will i pay extra tax and are there limits?
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What type of pension are you currently drawing from DB or DC ? If DC how much have you drawn and how as if you have took more than the tax free amount, you have triggered the MPAA. Which I believe has just been raised from 4k p.a. to 10k p.a. by the chancellor from April 23
What are DB, DC and MPAA
DC - Defined contribution, this is just a large pot of money, and you can choose how much to withdraw at any time.
MPAA - the money purchase annual allowance, this is triggered if you take taxable income from a DC pension and then limits you to 4k (rising to 10k in April) yearly contributions to other pensions. This is the thing we need to establish if you have triggered in order to answer your original question.