We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
SIPP drawdown and contribution timings
masca
Posts: 84 Forumite
Hi. I'm unclear about the best order of events and looking for a sanity check please!
HL SIPP balance is c.£7,400 in cash, eligible for drawdown later this month. No contribution for 2025-26 has been made yet. Would it be best to drawdown £7,350 ASAP, leaving a balance of just £50 to keep the account open (I believe £50 is the recommended minimum?) and then contribute £2,880 and take a second drawdown of £3,600 later this same tax year. Or contribute £2,880 now and then drawdown £10,950 as soon as this year's tax relief has been credited? Or does the order of events make little/no difference?! There's no other income to take into consideration.
TIA!
HL SIPP balance is c.£7,400 in cash, eligible for drawdown later this month. No contribution for 2025-26 has been made yet. Would it be best to drawdown £7,350 ASAP, leaving a balance of just £50 to keep the account open (I believe £50 is the recommended minimum?) and then contribute £2,880 and take a second drawdown of £3,600 later this same tax year. Or contribute £2,880 now and then drawdown £10,950 as soon as this year's tax relief has been credited? Or does the order of events make little/no difference?! There's no other income to take into consideration.
TIA!
0
Comments
-
Do you need the income this year?
You could take the tax free cash from the £7400 + £3600 as soon as the relief is credited then £1047 per month until Feb, then the final balance amount in March.
Doing it that way will prevent any tax being paid and having to wait until probably October next year for a refund.2 -
That sounds like a plan! Thank you.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards