Retirement Annuity Contract

The pension contract which preceded personal pension plans prior to 1st July 1988; also described as a Section 226 Policy referring to section 226 of the Income and Corporation Taxes Act 1970.

Contribution limits retirement ages cash sums available at retirement and other features are not the same as those for Personal Pension Plans. The earnings cap does not apply to a Retirement Annuity Contract unless a contribution has been made by the individual to a personal pension plan in the same tax year.

Retirement Annuity Contracts have not been available since June 1988 but most existing contracts continued to accept additional contributions after that date.

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2009-02-17 00:00:00 © Moneyextra.com