The Lemon Fool

Jean has an additional voluntary contribution (unit-linked) with Equitable Life with an estimated value of about £51K. She is retiring from NHS in April 2017.

Can she withdraw 25% (tax free) from the funds and transfer the remaining 75% to a new SIPP provider into a flexi-access drawdown? Can she withdraw 25% (tax free) each subsequent year from the flexi-access drawdown? Or will she need to transfer the whole funds to a new SIPP provider into a flexi-access drawdown and then start withdrawing 25% (tax-free) each subsequent year?

Can someone please explain the rules of uncrystallised/crystallised Funds Pension Lump Sum?

Many thanks

busybee wrote:Can someone please explain the rules of uncrystallised/crystallised Funds Pension Lump Sum?

The key is in the word "uncrystallised". If the 25% tax free is taken, then the entire fund is now crystallised.

So while the remaining 75% can be transferred elsewhere, it's no longer eligible for UFPLS-type drawdown. Normal flexi-access drawdown, with no tax-free element, should be possible though.

Scott.