Crystalising now or in the new tax year
Posted: February 23rd, 2024, 11:14 am
So, get £220k I don't need now or wait?
I crystallised and withdrew £36k of my HL SIPP last year, and have £877k left. I have a DB pension in 4 years, currently £7k, lump sum £21k. I don't need the access the money to live on, indeed the SIPP might be useful for estate planning in the long term.
If I crystallised the SIPP now, I could get a £220k lump sum, and have £20k left of my lump sum allowance. I could get some of that with recycling £2880 contributions, or just wait for just a little bit more growth.
My total pension (£36k+£877k+20*£7k) = £1053k is now very close to the £1073k LTA, should I wait until it matches it? My big worry is the 55% tax on excess growth at 75, as I reckon you'd struggle to extract the natural grown of a £660k crystalised pot fast enough.
With the abolition/possible reintroduction of the LTA, is there any difference in record keeping in doing the deed this tax year or next? I've tried reading the 22/11/23 https://www.gov.uk/government/publicati ... owance-lta to explain how a 24/25 withdrawal might differ from a 23/24 one, and my head spins.
I crystallised and withdrew £36k of my HL SIPP last year, and have £877k left. I have a DB pension in 4 years, currently £7k, lump sum £21k. I don't need the access the money to live on, indeed the SIPP might be useful for estate planning in the long term.
If I crystallised the SIPP now, I could get a £220k lump sum, and have £20k left of my lump sum allowance. I could get some of that with recycling £2880 contributions, or just wait for just a little bit more growth.
My total pension (£36k+£877k+20*£7k) = £1053k is now very close to the £1073k LTA, should I wait until it matches it? My big worry is the 55% tax on excess growth at 75, as I reckon you'd struggle to extract the natural grown of a £660k crystalised pot fast enough.
With the abolition/possible reintroduction of the LTA, is there any difference in record keeping in doing the deed this tax year or next? I've tried reading the 22/11/23 https://www.gov.uk/government/publicati ... owance-lta to explain how a 24/25 withdrawal might differ from a 23/24 one, and my head spins.