| Change |
Conditions That Apply |
Special Requirements |
A New Ontario Life Income Fund ("New LIF") is available. |
- To open a New LIF you must transfer money from an Ontario LIRA
(age permitting), Old Ontario Life Income Fund ("Old LIF") or an
Ontario Locked-In Retirement Income Fund ("LRIF").
|
To convert a LIRA to a New LIF you must have reached the age at which you would have been eligible for a pension from the pension plan that was the source of the LIRA funds, or be at least 55 years of age, whichever is older. |
| Old LIFs and LRIFs no longer available for new customers. |
- Owners of existing Old LIFs and LRIFs may transfer money to
these plans, but only until December 31, 2008. Effective January
1, 2009, no money can be added to existing Old LIFs or
LRIFs.
|
N/A |
25% of money transferred to a New LIF can be unlocked. |
- You must request the unlocking within 60
days of the date the funds were transferred to the New LIF.
- The unlocked funds may be taken in cash (less applicable withholding taxes) or can be transferred tax-free to an unlocked RRSP or RRIF.
|
You must complete Ontario Form 5.1. |
| Requirement to convert a LIF to an annuity at age 80 has been eliminated. |
- Applies to Old LIFs and New LIFs.
|
N/A |
| Transfer of survivor benefits to an RRSP or RRIF. |
- Spouses of deceased owners of all Ontario locked-in plans will
be able to transfer their survivor benefit directly to an RRSP or
RRIF where permitted by the federal Income Tax Act.
|
N/A |
| Small amounts in Ontario locked-in plans can be unlocked and transferred to an RRSP or RRIF or withdrawn in cash (less applicable withholding tax). |
- Owners of Ontario locked-in plans who are at least age 55 and who have less than 40% of the Year's Maximum Pensionable Earnings (YMPE) in all
their Ontario locked-in plans will have the option of unlocking
and transferring the money directly to an RRSP or RRIF, or
unlocking and withdrawing all the money in cash (less applicable
withholding tax). The YMPE for 2008 is $44,900.
- You must unlock and withdraw/transfer all of the money in your account.
|
You must complete the applicable sections of Ontario Form 5. |
| Ontario locked-in plans can be unlocked and withdrawn after two years of non-residency |
- Owners of Ontario locked-in plans who are non-residents of
Canada, as determined by the Canada Revenue Agency for the
purposes of the federal Income Tax Act, may apply two years after
departure from Canada to unlock and withdraw all of the money in
their Ontario locked-in plans (subject to applicable non-resident
withholding tax).
|
You must complete the applicable sections of Ontario Form 5. |
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