Removing TFLS and where to leave residual funds?

RogerPensionGuy

Ciprico said:

If part of the SIPP is left uncrystalised you can

 -add £2800/3600 pa

- take three small pots from it, so increase the tfls by £30k

You can't take small pots from crystalised acct

As you say you will have taken £268k-ish, the second reason could be worth some consideration.....

Good point. 

Use the residual uncrystallised to do easy 2880/3600 top ups currently. 

Then in the future maybe chopp up/out 3 X 10K and flush out under the small pots rules currently. 

Every little helps as they say. 

NoMore

RogerPensionGuy said:

Ciprico said:

If part of the SIPP is left uncrystalised you can

 -add £2800/3600 pa

- take three small pots from it, so increase the tfls by £30k

You can't take small pots from crystalised acct

As you say you will have taken £268k-ish, the second reason could be worth some consideration.....

Good point. 

Use the residual uncrystallised to do easy 2880/3600 top ups currently. 

Then in the future maybe chopp up/out 3 X 10K and flush out under the small pots rules currently. 

Every little helps as they say. 

Without any TFLS left do you gain anything from the £2880 top up, you presumably have more than 30k in the uncrystallised potion to realise the small pots, so not sure what you gain adding more to pension with no TFLS left.

Albermarle

RogerPensionGuy said:

Ciprico said:

If part of the SIPP is left uncrystalised you can

 -add £2800/3600 pa

- take three small pots from it, so increase the tfls by £30k

You can't take small pots from crystalised acct

As you say you will have taken £268k-ish, the second reason could be worth some consideration.....

Good point. 

Use the residual uncrystallised to do easy 2880/3600 top ups currently. 

Then in the future maybe chopp up/out 3 X 10K and flush out under the small pots rules currently. 

Every little helps as they say. 

Most retail pension providers will not split off three small pots for you. Some do not even have the facility to make even one small pot withdrawal, even if it is a genuine small pot. 

RogerPensionGuy

NoMore said:

RogerPensionGuy said:

Ciprico said:

If part of the SIPP is left uncrystalised you can

 -add £2800/3600 pa

- take three small pots from it, so increase the tfls by £30k

You can't take small pots from crystalised acct

As you say you will have taken £268k-ish, the second reason could be worth some consideration.....

Good point. 

Use the residual uncrystallised to do easy 2880/3600 top ups currently. 

Then in the future maybe chopp up/out 3 X 10K and flush out under the small pots rules currently. 

Every little helps as they say. 

Without any TFLS left do you gain anything from the £2880 top up, you presumably have more than 30k in the uncrystallised potion to realise the small pots, so not sure what you gain adding more to pension with no TFLS left.

Topping up small pots or even a main SIPP with more uncrystallised funds is just a bit of housekeeping for balance, SIPPs currently live in a nice tax environment and if I'm extracting TFLS and buying an annuity or two, slight topping up is okay.

I do wonder if they will ever reintroduce the scrapped LTA or dream up a new net for more tax revenues. 

RogerPensionGuy

RogerPensionGuy said:

QrizB said:

I can't see any harm in leaving £200k uncrystallised. Folk here say it's easier to move uncrystallised funds, and there's no advantage to crystallising if you can't take the TFLS.

Further to this comment. 

This SIPP provider has indeed told me after I remove that TFLS and have the two pots in the SIPP, some being crystallised and some being uncrystallised, if in the future if I wish to transfer to another SIPP provider, some providers won't accept crystallised funds. 

I spoke to two different mainstream platforms today. 

They both said they will accept a SIPP transfer with both crystallised and uncrystallised pots/buckets as long as its a full transfer.

squirrelpie

RogerPensionGuy said:

They both said they will accept a SIPP transfer with both crystallised and uncrystallised pots/buckets as long as its a full transfer.

So you have a choice of potential providers. It doesn't make what your current provider said wrong, though. I'm not sure what your point is?

RogerPensionGuy

squirrelpie said:

RogerPensionGuy said:

They both said they will accept a SIPP transfer with both crystallised and uncrystallised pots/buckets as long as its a full transfer.

So you have a choice of potential providers. It doesn't make what your current provider said wrong, though. I'm not sure what your point is?

The current SIPP where I'm taking out out me TFLS just advised me that some platforms won't accept crystallised funds if I transfer out residual money to another provided. 

Current SIPP people just advise fees will change as my SIPP changes state to deaccumilation, fee changes will be document to activate TFLS apparently, I guess fees will go up, but their not the cheapest anyways, so I'll txfr out after TFLS and annuities sorted in these next few weeks.