Retirement at 60, the plan:

FIREDreamer

magd36 said:

The tax wrapper and the investments in the tax wrapper are two different things.

You can hold deposits inside a 

Is she a shareholding director or have access to employer contributions that could be used to pay that?
If no, then you cannot use carry forward from previous years.

I understand the investment/tax wrapper however don’t understand the relevance to anything or don’t get the point you’re making. Sorry.

Regarding paying in unused pension allowance, I thought everyone could pay up to 100% of their salary going back 2 years. If her DB uses £4k she has £16k left from a £20k salary. Using previous 2 years she can invest £32k as a lump sum in a SIPP. If not why not?

Maximum across all pensions is the salary of £20k - previous years are irrelevant if salary is less than £60k.

magd36

Marcon said:

Is your wife earning £60K+? You can't use carry forward unless her earnings in the year she actually makes the SIPP contribution are sufficient to do so (taking into account any personal contributions she has made to her workplace DB scheme).

If she earns £20k, roughly at least £15 k was unused in 2023 & 2024 she could borrow from these years this year and pay in £30k plus this year no?

Marcon

magd36 said:

Marcon said:

Is your wife earning £60K+? You can't use carry forward unless her earnings in the year she actually makes the SIPP contribution are sufficient to do so (taking into account any personal contributions she has made to her workplace DB scheme).

If she earns £20k, roughly at least £15 k was unused in 2023 & 2024 she could borrow from these years this year and pay in £30k plus this year no?

No. She can only get tax relief on pension contributions in the year she actually pays them.

magd36

Isthisforreal99 

You are way out on that assumption.

Why? Can you explain 

Marcon

OP - stop posting for a minute and read (carefully) the replies you've received. 

QrizB

magd36 said:

Isthisforreal99 

You are way out on that assumption.

Why? Can you explain 

As Marcon says in the post above yours +I think you were both posting simultaneously):

Marcon said:

magd36 said:

Marcon said:

Is your wife earning £60K+? You can't use carry forward unless her earnings in the year she actually makes the SIPP contribution are sufficient to do so (taking into account any personal contributions she has made to her workplace DB scheme).

If she earns £20k, roughly at least £15 k was unused in 2023 & 2024 she could borrow from these years this year and pay in £30k plus this year no?

No. She can only get tax relief on pension contributions in the year she actually pays them.

This is a fairly common misunderstanding, on this forum at least!

See eg. Dave from Bristol who had the same question only yesterday:

https://forums.moneysavingexpert.com/discussion/6627977/top-up-pension-or-play-safe-with-fixed-rate-bond

noitsnotme

magd36 said:

Isthisforreal99 

You are way out on that assumption.

Why? Can you explain 

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward

magd36

FIREDreamer said:

Maximum across all pensions is the salary of £20k - previous years are irrelevant if salary is less than £60k.

Got it. Thank you. So I’ll forget that bit

magd36

magd36 said:

Isthisforreal99 

You are way out on that assumption.

Why? Can you explain 

Understand now.

magd36

Marcon said:

OP - stop posting for a minute and read (carefully) the replies you've received. 

I was reading honest. It just toolk one of the posts to be worded in a way that I understood. Clear now . Thanks to all. I’ll drop that part but the rest is hopefully reasonable