Hi hlingh, As I understand it, and correct me if I'm wrong anyone, our problem was only that we had a high portion of our pension pot that would be taxable to non-dependant beneficiaries,
That portion has now been reduced by the re-contribution described.
We will repeat the exercise next year as we still have a portion of our pension pot that would be taxable to non-dependant beneficiaries.
We have no problem with the amount in the accumulation pot as we always commence a pension from it which makes the earnings non taxable.
In your case, if you have funds in the accumulation pot, the earnings there are taxed. Once you commence pensions from any of the accumulation pot, those assets become part of the pension pot and the earnings in the pension pot are then not taxed. Like us, depending on where the contributions came from*, some may be taxable to your children if they are non-dependents. Simply getting all into the pension pot may not keep your children 100% happy.
Earnings on the accumulation pot are taxed. Earnings in the pension pot are not taxed. *Non dependants may have to pay some tax on portion of the whole fund.
