TFLS withdrawal from my SIPP
Posted: November 4th, 2023, 2:05 pm
Hi,
I'm a bit confused about the mechanics of taking my TFLS from interactive investor SIPP. Questions as follows;
1)Say I have £500k in my SIPP and want to take my 25% tax free lump sum. Then I have to move the £500k to flexi draw down. I then take my £125k tax free. My question is would I then notice any differences when I contribute to my SIPP afterwards (pension recycling rules observed) or is the split into two pots a background thing?
2) Second, if I wanted only part of the tax free amount, say half of 25% then I transfer £250k to flexi access drawdown to take out £62.5k then leaving the remaining benefit of the 50% of the 25% in the 'main' pot to transfer to flexi access at a later date?
3) Does the mix of whether the cash is in 'main' pot or 'flexi access' make any difference to returns? I could just transfer the entire 100% to flexi access drawdown to save two lots of admin if I'm going to front end the taking of the entire 25% anyway over time and the interface for investing with Interactive investor remains the same after this.
Sorry for the ramble, hopefully one of you understands.
John
I'm a bit confused about the mechanics of taking my TFLS from interactive investor SIPP. Questions as follows;
1)Say I have £500k in my SIPP and want to take my 25% tax free lump sum. Then I have to move the £500k to flexi draw down. I then take my £125k tax free. My question is would I then notice any differences when I contribute to my SIPP afterwards (pension recycling rules observed) or is the split into two pots a background thing?
2) Second, if I wanted only part of the tax free amount, say half of 25% then I transfer £250k to flexi access drawdown to take out £62.5k then leaving the remaining benefit of the 50% of the 25% in the 'main' pot to transfer to flexi access at a later date?
3) Does the mix of whether the cash is in 'main' pot or 'flexi access' make any difference to returns? I could just transfer the entire 100% to flexi access drawdown to save two lots of admin if I'm going to front end the taking of the entire 25% anyway over time and the interface for investing with Interactive investor remains the same after this.
Sorry for the ramble, hopefully one of you understands.
John