The pension is locked as I no longer work for the company that created it and have started a new private pension. I continue to pay NI and have done since leaving school. Can I cash my old pension in as I would like to invest the funds in a new company that I have set up.
2007-06-26 12:08:54 · 8 answers · asked by ? 2 in Business & Finance ➔ Personal Finance
You can only normally cash it in of you were in the old pension scheme for 1 or 2 years, I think. Then you can get a refund of contributions. Otherwise you can transfer the beneifts to a new scheme, or leave it where it is until you reach pension age.
2007-06-26 12:14:59 · answer #1 · answered by twinkle 2 · 0⤊ 1⤋
UK ... you CAN'T get the money yourself until you Retire BUT you CAN Transfer the Pension into a SIPP (Self Invested Pension Plan) or SSAS (Small Self Administered Scheme) and use the SIPP/SSAS to help your Business.
A SIPP can invest in Commercial Buildings (buy the premises that your Business uses) - the Business then pays RENT to the SIPP. The SIPP does not pay Tax on the rent or on any gains made when selling the property.
It is even possible for the SIPP to borrow money ! Unfortunately this is limited to 50% of the 'POT' ... so if the SIPP is worth say £100,000 it can borrow an additional £50,000 giving the SIPP £150,000 to invest ..
A SSAS can actually lend money to the Business = however this could be rather risky (any problems will impact your future pension) .. and after Maxwell there are a lot of restrictions (i.e. hoops you have to jump through)..
I suggest you choose your Business Advisor carefully - make sure he/she knows about SIPP's / SSAS's as well as Business !
... or you can check out the discussion groups for some informal advise = at least one person (link below) who invests in Commercial property via their SIPP
2007-06-27 02:35:29 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋
IF you can cash in the pension, you will pay a 10% penalty in addition to regular income tax on the full amount. Whether you can cash it in is entirely up to the terms of the pension plan in question. No one here knows what those terms are.
Dan H: We are all volunteers, but not all amateurs. There are actual professionals on YA. I don't happen to be one of them.
2007-06-26 19:39:19 · answer #3 · answered by STEVEN F 7 · 0⤊ 1⤋
NO, you can not cash it out the whole pension. You can not take out the employer's portion of the contribution / match, but you can withdraw your own portion of contribution subject to tax and early withdrawal penalty, if you do that, then you have no more pension with the company. If you leave it there, then you get to collect from that pension when you reach your pension withdrawal age.
2007-06-26 19:23:43 · answer #4 · answered by Anonymous · 0⤊ 1⤋
No but you can transfer it to your new company funds or private pension funds but you will have to pay a transfer fee and the parties involved will advise you.
Perhaps if you approach the fund you wish to transfer it to and ask them what percentage if any they take for acting on your behalf, (your old company can advise what their percentage will be).
Your new company should be able to advise the approximate percentage they are likely to charge if you transfer from them to another company in the future.
2007-06-26 19:48:44 · answer #5 · answered by Jewel 6 · 0⤊ 1⤋
Probably not without severe tax consequences.
You would be foolish to do that anyway. It is your future, and this start-up business is very risky.
We are all volunteers and amateurs here. Nothing we say will hold up against the IRS. Consult an attorney who deals in pensions.
2007-06-26 19:15:06 · answer #6 · answered by Anonymous · 0⤊ 1⤋
You don't have a leg to sand on, hahah
2007-06-26 19:12:30 · answer #7 · answered by Anonymous · 0⤊ 2⤋
Doubt full.
2007-06-26 19:14:19 · answer #8 · answered by biker_beeotch 2 · 0⤊ 2⤋