Hi MADX, Thanx for trying to explain to me. I think I am still none the wiser. I know earnings from a pension pot are tax free which is why all my fund is in pension mode. Refer back to your post…you said “On death of both fund members, part of the fund will be highly taxed to beneficiaries. We want to reduce that part….” My questions are: What or why is that highly taxable part to your beneficiaries? Is it because those fund came from deductible contributions like your employer's contribution, salary sacrifice contributions? And*** WHY*** by withdrawing them to an external bank account and recontribute back into the fund would become non-deductible contribution? Also, when I kick my bucket, and all my funds are in pension mode, how much would my non-dependent beneficiaries get taxed? I think I may need tax savvy persons to answer my questions above.
