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Drawdown and crystalisation
![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie
Got 25% tax free about a year ago and understand that the remaining 75% is then crystalised so you can't get the tax free again, so you have 2 SIPP pots.
Am I right that any contributions AFTER this drawdown would go into the uncrystalised pot?
Example:-
£200K drawdown so £50K cash tax free, leaving £150K crystalised pot (£0 uncrystalised at this point).
£25K contributions over the next year.
Should the case then be
Cryalised pot = £150K plus whatever its grown by
Uncrysalised = £25K plus whatever its grown by.
Is that right?
Am I right that any contributions AFTER this drawdown would go into the uncrystalised pot?
Example:-
£200K drawdown so £50K cash tax free, leaving £150K crystalised pot (£0 uncrystalised at this point).
£25K contributions over the next year.
Should the case then be
Cryalised pot = £150K plus whatever its grown by
Uncrysalised = £25K plus whatever its grown by.
Is that right?
0
Comments
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Am I right that any contributions AFTER this drawdown would go into the uncrystalised pot?Yes it is......
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
It is but only some providers actually have two distinct pots. Others just have one and will give a % of how much of it is crystallised or uncrystallised.[Deleted User] said:Got 25% tax free about a year ago and understand that the remaining 75% is then crystalised so you can't get the tax free again, so you have 2 SIPP pots.
Am I right that any contributions AFTER this drawdown would go into the uncrystalised pot?
Example:-
£200K drawdown so £50K cash tax free, leaving £150K crystalised pot (£0 uncrystalised at this point).
£25K contributions over the next year.
Should the case then be
Cryalised pot = £150K plus whatever its grown by
Uncrysalised = £25K plus whatever its grown by.
Is that right?0
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