Ads
keep this website free for you. TaxTips.ca does
not research or endorse any product or service appearing in
ads on this site.
Before making a major financial decision you
should consult a qualified professional.
Transfer of a Federally Registered Pension Plan
to a Locked-In Plan
Where employment has been terminated with a federally
regulated employer, the Registered Pension Plan of the
employee can usually be transferred to a locked-in retirement
account, also known as a locked-in RRSP. These accounts are governed by the federal Pension
Benefits Standards Act (PBSA). How the funds are
withdrawn by the employee are covered by the Pension
Benefits Standards Regulations s. 20 and 20.1. The
following rules apply:
The funds in the locked-in account:
can be transferred to another locked-in-retirement account
it is no longer required that an annuity
be purchased at age 80.
Once age
90 is reached, 100% of the LIF may be
withdrawn.
A locked-in retirement account may provide that if a physician certifies that the life of the holder
of the account is expected to be shortened
considerably due to mental or physical disability, the
funds can be withdrawn in a lump sum.
By the end of the year in which the taxpayer
turns 71, a locked-in account must be transferred - for options see the article on locked-in
retirement accounts.
For information regarding unlocking of federally-regulated locked-in pension plans, see
the article on unlocking your pension plan.
Facebook
| Twitter
| LinkedIn
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
Please see our legal
disclaimer regarding the use of information on our site, and our Privacy
Policy regarding information that may be collected from visitors to our
site.