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TFLS and post MPAA payments

If I start drawing down on my SIPP and take the initial 25% tax free lump sum and start monthly withdrawals and subsequently add to my SIPP can I just take the balance of the newly added amounts  TFLS at any time? Does the company holding the SIPP "manage" what this amount is it is that down to me?

Thanks. 

Comments

  • NedS
    NedS Posts: 4,883 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    It is different per provider. Some providers split your account into two pots (crystallised and uncrystallised) whereas others do not and I assume keep a record of the percentage or amounts that are crystallised. You would be best placed to ask your provider how they manage it, but yes you can subsequently crystallise any uncrystallised funds and take a TFLS upon crystallisation.
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  • Somebody
    Somebody Posts: 234 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 25 March 2023 at 9:45PM
    If you start income drawdown you can't subsequently add to your SIPP unless you are earning, and contributions are then subject to the MPAA.

    Correction: you can continue to contribute £2,880 nett; £3,600 gross regardless.
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