6
votes
Accepted
Can you use a tax-free lump sum to buy a second annuity?
The term you're looking for is a "Purchased life annuity".
The only official page about them I can find is HMRC's page which is a bit technical and obscure, but you can get some idea about ...
- 27.9k
5
votes
Accepted
How does moving overseas affect UK state pension and can you continue paying into it from abroad?
Yes - you can make voluntary national insurance contributions.
The current rates are either £3.45/week ("Class 2") or £17.45/week ("Class 3"), which is quite a big difference. In ...
- 27.9k
4
votes
Accepted
Can I move monthly pension distributions into a traditional IRA?
The indirect rollover (money distributed to you that you then deposit into an IRA within 60 days) is allowed, but if your plan withholds any taxes from the distributions you'll need to make those up ...
- 166k
3
votes
In the UK, is it more productive to pay wages into a pension than put money into investments?
You would effectively be getting extra free money in your pension, in the form of a tax refund. But keep in mind that pensions are taxable when you do retire.
An alternative to consider is to put £...
- 9,781
2
votes
Accepted
How do I calculate my pension contribution for automatic enrolment at 5%?
"Relief at source" means that the pension provider claims basic rate tax back from HMRC on your contributions. If the final contribution should be £100, then £80 - i.e. £100 with basic rate ...
- 27.9k
2
votes
Accepted
Can I manage somebody else pension pot?
Once you put money in a pension fund in someone else's name, you lose control of it.
If it's used to buy an annuity, then the pension's owner also loses control in that the annuity provider will just ...
- 27.9k
2
votes
Caveat for participating in a private retirement fund sponsored by German "Riester-Rente"?
I agree with glglgl: From an insurant's perspective many Riester (insurance!) products come with high cost.
It's not unusual that you pay 5 % of your premiums as acquisition costs. These costs are ...
- 243
2
votes
After 4 yrs, new money shows up in closed 401K account
I have heard of deposits into a 401(k) the year after leaving the company. This occurs when there is a profit sharing or similar bonus paid after you leave but you still qualified for it.
I have seen ...
- 136k
2
votes
Accepted
UK Pension Annual Allowance and Carry Forward
They fill the current years' allowance before flowing down to previous years (oldest first).
References:
The general UK government page:
If you use all of your annual allowance for the current tax ...
- 27.9k
1
vote
Exceeding UK annual pension allowance
Normally with pensions you get exempted from income tax when you pay in, and then you pay tax when you withdraw from the pension, often at a lower marginal rate as you're retired by then so maybe you ...
- 27.9k
1
vote
Accepted
Exceeding UK annual pension allowance
I think you're right, but they don't make it easy to find out. After chasing links on the HMRC website I eventually arrived at https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm056110, ...
- 3,975
1
vote
How do I calculate my deductions (income, national insurance, pension & student loan) for an income of 1 week?
You don't pay 20% on your whole income, you pay 20% on the portion that is above £12.570 (and 40% of what is above £50.271). Your personal allowance is not used up in the early months - otherwise your ...
- 2,303
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