Pension contributions after drawdown

Enjoying_life_more · 10 July 2019 at 5:02PM

I may access money from DC pension pots in the next few years. I understand that once I draw down the crystallised bit I will be limited to 4000 pound a year contributions ( inc tax benefits ). I have a part time job with DB pension - what I can’t seem to establish is - will this be included as part of the 4000 limit . If so is it the bit I put in or is it the total of mine and employers contributions . Asking as I would still like to contribute to a SIPP

Thanks in advance.

campbell19925 · 10 July 2019 at 5:40PM

Enjoying_life_more wrote: »

I may access money from DC pension pots in the next few years. I understand that once I draw down the crystallised bit I will be limited to 4000 pound a year contributions ( inc tax benefits ). I have a part time job with DB pension - what I can’t seem to establish is - will this be included as part of the 4000 limit . If so is it the bit I put in or is it the total of mine and employers contributions . Asking as I would still like to contribute to a SIPP

Thanks in advance.

The MPAA only applies to DC arrangements so you will be Ok continuing to accrue benefits in your DB scheme.

Enjoying_life_more · 10 July 2019 at 6:44PM

campbell19925 wrote: »

The MPAA only applies to DC arrangements so you will be Ok continuing to accrue benefits in your DB scheme.

Thank you for your prompt response. That’s great news for me !

Brynsam · 11 July 2019 at 12:16AM

Enjoying_life_more wrote: »

- what I can’t seem to establish is - will this be included as part of the 4000 limit .

Not sure where you've tried, but your DC provide of DB administrator should have been able to answer that instantly. Googling on 'does MPAA apply to DB scheme' would also have given you an instant answer e.g. https://www.moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance

Worth a further look in case you can avoid the MPAA for a bit to enable you to pay more to your SIPP (e.g. by taking no more than 25% as a tax free lump sum from your DC scheme, perhaps in tranches).

Enjoying_life_more · 11 July 2019 at 2:24PM

Brynsam wrote: »

Not sure where you've tried, but your DC provide of DB administrator should have been able to answer that instantly. Googling on 'does MPAA apply to DB scheme' would also have given you an instant answer e.g. https://www.moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance

Worth a further look in case you can avoid the MPAA for a bit to enable you to pay more to your SIPP (e.g. by taking no more than 25% as a tax free lump sum from your DC scheme, perhaps in tranches).

Thanks very much for the info and links - this is very useful. I had done quite a bit of googling but couldn’t find the answer. I hadn’t thought to ring my providers.

Pension contributions after drawdown

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