Section C Member...
I know we get a 25% tax free lump sum with our NRA 60 & NRA 65 but I wondered does the DBCBS also give you a tax free lump sum or how does it work...
Many thanks
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25% Tax Free
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RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: 25% Tax Free
The original idea of the DBCBS was to fund the tax free lump sum when taking your NRA65 benefits, so less or no pension would need to be commuted to get that lump sum, and that is still likely to be the most tax efficient method for most people.
But for those who want the maximum lump sum, it's possible to take 25% from your main benefits and therefore take a reduced pension, but also take the whole of your DBCBS fund as cash, with the first 25% being tax free.
Any AVC's would also need to be factored in.
But for those who want the maximum lump sum, it's possible to take 25% from your main benefits and therefore take a reduced pension, but also take the whole of your DBCBS fund as cash, with the first 25% being tax free.
Any AVC's would also need to be factored in.
Links to all RM pension related websites are here