The Money Purchase Annual Allowance (MPAA) is triggered when opting for flexible access to pension savings after April 6, 2015.
Taking income from a flexi-access drawdown plan, making a full or partial cash lump sum withdrawal, or surpassing the maximum limit in a capped drawdown plan activates the MPAA. These actions result in a reduction of your annual contribution limit from £60,000 to £10,000. It’s crucial to stay aware of these triggers and manage your pension contributions accordingly, ensuring compliance and avoiding potential tax implications. For personalized guidance, consult our financial advisers.