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The consultant asks whether the 40% reduction for pre-2007 contributions can be applied when withdrawing from a pension plan following a collective dismissal. The DGT responds that if the plan allows early withdrawal due to dismissal, the contingency is deemed to have occurred at the time of dismissal, and the reduction may apply if the legal period is met.
Policyholders who leave a pension plan due to a collective dismissal may qualify for a 40% reduction on their withdrawal, provided the plan permits early access and the legal period is satisfied.
The tax team reviews your specific situation.
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