swill453 wrote:hiriskpaul wrote:I can sort of see how it might work. The administrator has to keep track of the proportion of the fund that is crystallised but not yet drawn (C). When crystallising an amount X, C increases by X. X must always be less than or equal to 100%-C. When drawing down an amount D, C drops to (C-D)/(1-D). D must always be less than or equal to C.
For example, initially with a 100k C=0%. Crystallise 20k, X=20% of the fund and C=20%.
Drawdown 10k, D=10% and C=(20%-10%)/(100%-10%) = 1/9 ~= 11.1111%.
Drawdown 5k, D=5k/90k ~= 5.5555% and C=(11.1111%-5.5555%)/(100%-5.5555%) ~= 5.8824%.
Drawdown 5k, D=5k/85k ~= 5.8824% and C=(5.8824%-5.8824%)/(100%-5.8824%) = 0%
Something along those lines should keep within the flexi-access drawdown rules whilst keeping everything in one pot.
Yes something like that. The important thing is that the percentage value has to be calculated on the day any deposits and withdrawals are made. It's not something that could be done retrospectively, as the value of the SIPP will be constantly changing.
You just have to hope that the administrators are keeping track of it.
I see what you mean. That is complicated. There may be additional rules that add to complexity as well. One that never occurred to me until I crystallised was accrued interest. If you hold bonds ìn your SIPP and crystallise a proportion of it, HL calculate the accrued interest on any bonds going into the drawdown account and include this in the crystallisation amount. This amount is used to test against the LTA and to work out the permitted PCLS. I guess Youinvest must take accrued interest into consideration as well somehow.