Money Management Newsletter: Managing
Financial Matters: Your locked-in retirement
pension could relieve financial hardship
If you or somebody you know transferred any money from a registered pension
plan into a locked-in retirement savings account, you may believe it must
remain there until you can use it to provide retirement income. Moreover,
did you know that in certain circumstances, you may be able to apply for
access to the money?
In determining if you qualify to withdraw funds from an Ontario-regulated,
locked-in retirement account (LIRA), life income fund (LIF) or locked-in
retirement income fund (LRIF), we've provided the following list which
highlights a few qualifying circumstances for making an application to
FSCO to withdraw money from your locked-in account, based on some form
of financial hardship.
- Low income, If you apply in this category, your expected total personal
income before taxes for the next 12 months must be less than $27,400
in the year 2005. This amount changes every year.
- Risk of eviction from your home or rented residence
- You need money in order to pay the first and last months' rental
deposits on a residence you wish to rent.
- You need money to pay for medical treatment for you, your spouse
or same-sex partner, or any dependants of either of you.
- You need money for residential renovations, alterations or construction
to accommodate the use of a wheelchair, or other needs related to
a disability or illness.
- Your life expectancy has been shortened to two years or less
- You are at least 55 years old and the total value of the funds in
all of your lock?in accounts is less than $16,440 (for applications
signed in 2005)
- Your locked-in assets exceed federal Income Tax Limits.
If you are facing specific types of financial hardship, a guide to applying
is available on the FSCO
This exercise is not without cost - unlocking fees can range from $200
up to $600. To view an application form, use the "unlock
your account" link. Information to assist in filling them out
is available there as well.
||Use this link to load a printer-friendly
version of this document.
Have a question regarding
this article? Use our feedback form
to send us a note.
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.