Deadline with withdraw up 50% from Old LIFs and LRIFs
Effective May 1, 2012, owners of Old LIFs and LRIFs will no longer be able to withdraw or transfer 50% of the assets in their account.
In June 2009, Regulation 909 under the Pension Benefits Act of Ontario was amended to include changes to the rules governing Ontario locked-in accounts including Old LIFs* and LRIFs. Owners of an Old LIF or LRIF will have a one-time opportunity to withdraw or transfer 50% of the total market value of the assets of the fund to an RRSP or RRIF.
April 30, 2012 is the deadline for Ontario Old Life Income Fund (LIF) and Locked-in Retirement Income Fund (LRIF) clients to take advantage of the onetime 50% unlocking opportunity available to them.
The request to withdraw or transfer must be made on a form approved by the Superintendent of Financial Services and be submitted by April 30, 2012. No applications for any withdrawal or transfer may be made after April 30, 2012.
* Old LIFs are Life Income Funds issued on or before December 31, 2007 and locked-in under the Pension Benefits Act of Ontario.
About the Author
Neil Lecky is a Life Insurance Advisor, Group Employee Benefit Specialist and an Investment Funds Advisor with Alliance Financial Group. He is also a Branch Manager and Investment Funds Advisor with Investia Financial Services Inc., a mutual fund dealer.