Leave a commentSome provinces allow the “unlocking” of all or a portion of a LIRA, LIF or LRIF under certain circumstances. Some of the circumstances includ
e:
- small balances in the account, under a specified threshold amount
- becoming non-resident of Canada
- shortened life expectancy
- financial hardship
- spousal or child maintenance enforcement orders
Some provinces allow the “unlocking” of all or a portion of a locked-in account without the above restrictions. For information by province, follow the links to your pension plan regulator, in the table of RPP regulators, or the following links:
Ontario
Locked-in accounts – from Financial Services Commission of Ontario (FSCO)
From January 1, 2011 to April 30, 2012, owners of Old LIFs and LRIFs will have a one-time opportunity to withdraw in cash or transfer to an RRSP or RRIF up to 50% of the total market value of the assets of the fund. See the following FSCO information on changes:
- Changes to the rules for Ontario locked-in accounts
- Locked-in account questions and answers
- Guide to Applying for Special Access to locked-in funds.
For more information visit the Tax Tips website.