SIPP withdrawal while relief is pending.

fineclaret

Apologies if this has been asked before. I made a small contribution to my ii SIPP, but subsequently decided to withdraw a larger lump for a holiday. I raised the cash by share sales, but during the withdrawal process I was warned that if new money was added, withdrawal would have to wait for tax relief to be posted. Since the payment isn't ring-fenced, the implication of this is that no withdrawals at all can be processed during that 6-10 week period, which seems inflexible - I have bags of money that has nothing to do with the contribution, and should not be affected by it. Similarly, if I was making regular payments, I could never withdraw!

I may have misunderstood the implications; opinions would be appreciated.

Marcon

I don't think you want opinions - surely facts would be more useful?! The 'warning' relates only to withdrawals which would of necessity involve drawing down 'new money'. If you already have plenty of 'old money' where the tax relief has already been added, then it shouldn't be an issue.

fineclaret

https://forums.moneysavingexpert.com/discussion/comment/81991139#Comment_81991139

I treat everything here as an opinion! But thanks, I thought that must be the case, but was puzzled why the warning was even given - it must be rare that the available money 'eats into' fresh money awaiting tax relief.

HappyHarry

https://forums.moneysavingexpert.com/discussion/comment/81991247#Comment_81991247

It won't be that uncommon for some individuals to deposit £2880 net into their pension and want to withdraw the gross amount of £3600 almost immediately.

kermchem

OP did ask about ii, but my experience with AJ Bell. I retired 30 April, paid my final salary £2880 into SIPP, will receive the tax relief about 22 June. On Sunday of a bank holiday weekend 3rd May I requested conversion of a portion of SIPP into drawdown. Lump sum paid today, Friday, and I expect first pension payment next week (Monday 10th). So, pending tax relief no obstacle to withdrawing from SIPP.

kempiejon

https://forums.moneysavingexpert.com/discussion/comment/81991264#Comment_81991264

And if you check around there are a few suppliers that credit the £720 almost immediately too. Embark Trustees are one such company that I have used. I believe, as part of the Lloyds Group they are the administrator for Scottish Widows née iWeb and Lloyds, Halifax and plausible those brands also fund the £720 promptly but I've not a SIPP with any of them.