lsa

addy090

hi newby here . i have a small pension pot to withdraw £5,900.. i withdrew £4,700 from a small pot october last year is this £4,700 the amount i need to take off my lump sum allowance sorry im a little confused and is the lsa still £26500,00 many thanks for any help 

NoMore

The lump sum allowance is £268275. It’s tested against tax free cash. So you need to track the amount of tax free cash you have withdrawn. 

You haven’t stated how you withdrew your 4700, was it all tax free or only 25% of it. Ot some other ratio if you used flexi access ? Anyway it’s only the tax free bit you check against the lsa. 

Edit: because somebody is going to point this out. If you took money out using the small pots rule, it isn’t tested against the lsa. 

DRS1

Don't assume that just because the pot is small that any withdrawal of it is using the small pots rule.  You need to make sure the pension provider knows that is the rule you want to apply.

This goes for the 5900 pot as well as the 4700 one.

Albermarle

DRS1 said:

Don't assume that just because the pot is small that any withdrawal of it is using the small pots rule.  You need to make sure the pension provider knows that is the rule you want to apply.

This goes for the 5900 pot as well as the 4700 one.

And that they actually offer the facility of withdrawals under the small pot rule, as some do not.