Money purchase annual allowance

A member who has taken some or all of their benefits may be restricted to an annual allowance of £4,000 as a result of a money purchase annual allowance test.

Any contributions paid by the member, or on their behalf, into any defined contribution scheme will be tested against a money purchase annual allowance limit of £4,000 per annum. If this limit is exceeded, the amount of contributions over £4,000 will give rise to an annual allowance charge.

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