SIPP minimum balance

Albermarle

eastcorkram said:

After waiting a week for them to respond via message, and they hadn't, I rang again today. Was then put through to the correct department. They've arranged a phone meeting for next Tuesday. What was said today was, there's basically two options.

 Take all of it out, 25% tax free, and the rest all taxed at 20%. 

OR

Take all of it, 25% tax free, and the rest subject to emergency tax. 

Will see what is said next week, but that did leave me wondering why would anyone choose the second option. 

So underlying that info from Fidelity, is that if you have less than £10K in their SIPP, you can not withdraw it in stages. It has to be all or nothing. I can only imagine that this is a company policy to avoid a lot of admin by small customers withdrawing small amounts each time. 

Of the two options above, the first one would seem to be a withdrawal under the Small Pots rule, and the second one just a normal withdrawal. The first one would seem to be better for most customers I would assume, although you probably will have to request it manually ( that is specifically request that the withdrawal is under the Small Pot rule ) and fill in a paper form, as opposed to just requesting it automatically on the website. 

Dazed_and_C0nfused

eastcorkram said:

After waiting a week for them to respond via message, and they hadn't, I rang again today. Was then put through to the correct department. They've arranged a phone meeting for next Tuesday. What was said today was, there's basically two options.

 Take all of it out, 25% tax free, and the rest all taxed at 20%. 

OR

Take all of it, 25% tax free, and the rest subject to emergency tax. 

Will see what is said next week, but that did leave me wondering why would anyone choose the second option. 

There isn't usually a choice however ignoring that, depending on the amounts option 2 would result in less tax being deducted.

The emergency tax code is 1257L so no tax on the first £1048 of taxable income taken (assuming monthly payroll).