AVIVA

clairbear_3

https://forums.moneysavingexpert.com/discussion/comment/82140060#Comment_82140060

I was thinking of opening another SIPP to do the £2880 flip every year otherwise it gets confusing what funds have been taken as 25% tax free(this aviva one) and which ones havent

k_man

https://forums.moneysavingexpert.com/discussion/comment/82140064#Comment_82140064

There are 2 versions of that fund.

The Inc one pays income, the Acc reinvests.

clairbear_3

https://forums.moneysavingexpert.com/discussion/comment/82140092#Comment_82140092

Im the Acc

clairbear_3

just planning ahead, to take out £2500 I assume I just sell enough of the fund to cash and withdraw it

I read that to avoid it being taxed you take out a very small amount(£1?) and wait for HMRC to provide tax code to AJBell (Im a non taxpayer) is this correct?

kermchem

My experience with A J Bell in May this year is that you complete a form asking to have a portion ( or all) of SIPP moved into drawdown. I have converted roughly one year’s worth to drawdown and left the rest uncrystallised. The 25% tax free arrived in my account 10 days later. Each month they take a sum of cash from the SIPP about the 9th of the month and it gets paid out. Payment is by BACS and it seems to get paid on 10th and then needs “three days” to arrive, those three days include the 10th, 11th and money arrives on the 12th provided none of those days is a weekend or bank holiday. If Good Friday were the 10th April then it will be Thursday by the time you see money.
Completing paperwork on 1st May got lump sum on 10th, but first monthly payment in June as too late for May payroll.
My first payment of £1100 arrived in June with almost no tax deducted, as PAYE month 1 assumes you have a full personal allowance and will get paid the same each month. Second payment AJB had a proper tax code from HMRC, and my personal allowance is actually being used by a DB pension, so each payment has 20% tax taken off plus a bit of the tax I didn’t pay in June. There is no personal allowance being set against the AJB pension.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82140137#Comment_82140137

Not sure if they have a minimum amount you can draw. Others have suggested £100 for the first draw to trigger the tax code. But in fact if AJBell use an emergency code of 1257L for the first draw I think you could draw up to £1047 in the first draw without any tax being deducted.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82140090#Comment_82140090

I think AJBell do a notional split between crystallised and uncrystallised so when you make the contribution you will be told x% of the SIPP is crystallised and y% is uncrystallised. I suppose they have a form that asks if what you are taking out of the SIPP is all crystallised or not. And when you make the withdrawal the percentages would change again. People who have done it will probably tell you it is simpler than it sounds.

kermchem

https://forums.moneysavingexpert.com/discussion/comment/82140249#Comment_82140249

The AJB website tells me how much my SIPP is worth, how much is accessed and how much not accessed - all in £.

I see no problem with adding a contribution of £2880 in April 2027, etc. I added my April (final) salary this year and it was still claiming the tax back as the first tranch went into drawdown.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82140256#Comment_82140256

So is "accessed" and "not accessed" their version of "crystallised" and uncrystallised"?

And when taking money out do you need to spell out "take it out of the accessed part"?

I don't know why I am asking. I don't have a pension any more not even with AJBell. But maybe the OP will be interested

kermchem

https://forums.moneysavingexpert.com/discussion/comment/82140279#Comment_82140279

Yes, accessed and unaccessed are crystalised and uncrystalised, but the pots are virtual. They add up to the total. I have crystallised roughly 17% and if the value of portfolio rises or falls then so does each pot

Each month I need cash available to meet the monthly withdrawal. Yes it comes out of the crystallised or accessed pot.
You could crystallise the whole lot, but I didn’t want or need that much tax free cash.