Joined: 14/01/2018(UTC)
Posts: 310
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OmegaMale;260928 wrote:Joe 90;260925 wrote:Chico99;260906 wrote:Joe 90;260889 wrote:
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Once you start drawing from the SIPP (as I am) no further contributions are possible.
I'd always thought you could still contribute (after starting to draw down) up to the MPAA. I didn't because - again, assuming I'd understood it correctly - adding ANY further contribution after starting draw down would have effectively removed my Fixed Protection (FP2016). I stress I was nowhere near the then LTA but taking FP2016 seemed a good idea at the time. I now need to get my head round whether it makes any real sense for me to slap £8,000/year across into the SIPP. You are correct in that a small amount can be contributed (£4,000 I recall). £10000 now according to https://inews.co.uk/news...ion%20vastly%20reduced.
"Additionally, the amount you can put in your pension once you’ve already withdrawn some has increased – from £4,000 to £10,000. How this works is those who have started to take money from their defined contribution pension have the amount that can be contribute while still getting tax relief capped. This is known as the money purchase annual allowance or MPAA. Currently the cap is £4,000 and for those who have fully retired and are under 75, the cap is just £3,600 per tax year. However, this amount has been increased to £10,000. This will help people who had retired, then went back into work later, and found the amount they could save into a pension vastly reduced." Not sure if the £3600 limit has changed? OM This suggests that after you have started to draw down (as I have) and even if you are not working, you can take £2,880 from your savings and stick it into your SIPP, and HMRC will give you £720. Is this correct? I'm struggling to find the relevant "official" guidance.
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