LIRA unlock to RRSP timeframe | RRSPs and RRIFs | Discussion forum

Your bank is 100% wrong on this

In Ontario you have 60 days to unlock 50% in cash or direct transfer to RRSP from the date "transferring to LIF"

So if your $$$ still in LIRA then open LIF then transfer $$$ to LIF and unlock 50% within the first 60 days note you must be 55 year old

Here is a good resource from OSFI. Check Question 2. Chart with Age 55 and over - One-time 50% unlocking.

https://www.osfi-bsif.gc.ca/Eng/pp-rr/faq/Pages/ulfpp-lrsp.aspx

This was very helpful to me. My big problem was my bank - very few people had a clue on how to arrange this and I was very worried the 60 days would expire before they got their ducks in a row! I was well into 3 branch visits as well as over 10 phone calls to follow up. Good luck!

NCC1701Z said
Thanks all.

Called them back (Investors edge) and now they say I can unlock 50% but it seems I must convert the LIRA to a LIF or RLIF 1st, then I can unlock 50% of the of the total into an RRSP. I'm not 71 but over 65 so I have a few years before I have to take withdrawals.

I think when I asked before they though I wanted to keep the LIRA and unlock 50% into an RRSP.

The only reason I want access to the RRSP/RRIF is because of the maximum withdrawal %'s on a LIF unlike a RRIF that has no maximums.  

Be careful. Once you have a LIF, you have to start taking annual withdrawals, no matter what your age. If you wait until 71, you can split your funds into LIF & RRSP, and not have to start withdrawing any until then. So only split early if you want money to come out of the LIF sooner.

At 71, is there a point of unlocking 50% to a RRSP ? Not sure it is still an option.

( ... ok I found the answer from my own post. LIF is locked-in but RRIF is not )

Since you are over 65, are you already claiming the full $2000 pension income tax credit (Line 31400) ?

I did mine at age 55 for lifetime tax planning/reduction purposes. Before I started I checked to make sure that my financial institution knew precisely what I wanted to do and the process. My pension was federally regulated so I read the information on the OSFI site beforehand and referred the first agent at my financial institution to it as they were giving me incorrect information. After some time they had someone who regularly processes these kinds of transactions contact me. After that things went reasonably smoothly. That's the key, finding someone at your financial institution who has experience in this transaction. I made sure I got all the proper documentation. One may need a notarized document depending on one's circumstances. Once I had all the proper documentation, including the notarized document I initiated the transfer from the L-RRSP to the RLIF. The Federal plan is an L-RRSP, at least mine was. All funds were transferred from the L-RRSP to the RLIF. From the time of conversion, one has 60 days to unlock half the value in the RLIF to an RRSP or RRIF. Well worth it as the RLIF maximum withdrawal rules are highly limiting. I've been withdrawing the maximum and my RLIF continues to grow over time as annual appreciation has been greater than annual maximum withdrawals. As such it may be well worth considering doing well before the year in which one turns age 72 if one's income tax situation isn't too restrictive. Otherwise, one won't get the bulk of their funds until well into their mid to late 80s.

Many comments here are meant for Ontario-based plans. Here is a link from my past research to a TD Wealth good-to-know PDF (2017) for Locked-in Plans in Canada. I would consider it trustworthy if the information therein is still up-to-date. Hope this helps.

Ontario locked-in account rules don't matter when the locked-in account is locked in under federal pension act.

It doesn't matter where one lives. If one lives in BC and one's locked in account is locked in under Manitoba's pension act, then it is the Manitoba rules that matter.