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Should I take Tax Free Lump Sum in case they change the rules?
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From my understanding : Yes.
It is called crystallization. So if you crystallize say £40,000 out of the 900k, and decide to take out the 40,000, then 25% of that ie 10,000 would be tax free and you pay income tax on the remaining 30,000. In future you could crystallize another 48,000 but just take the 25% lumpsum part tax free ie 12,000 and not touch the 36,000. But once you drawdown even a single penny from your pension pot, that triggers the MPAA (i.e future pension contributions restricted to 10K per year). So in this example, since we did a drawdown (of 30K), it would trigger MPAA.It is explained beautifully (much better than I could) by TedSwippet at Bogleheads :Please have a read : https://www.bogleheads.org/forum/viewtopic.php?p=7885026#p7885026
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