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 one time 50% unlocking opportunity available to them.
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. Until April 30, 2012, 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.
The request to withdraw or transfer must be made on a form approved by the Superintendent of Financial Services and be submitted to us by April 30, 2012.
No applications for any withdrawal or transfer may be made after April 30, 2012.
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.
For more information check out the information on the FSCO web site
* Old LIFs are Life Income Funds issued on or before December 31, 2007 and locked-in under the Pension Benefits Act of Ontario.
Showing posts with label LIF. Show all posts
Showing posts with label LIF. Show all posts
Thursday, March 22, 2012
Thursday, March 19, 2009
2008 RRIF minimums and 25% re-contributions
Do you know anyone who is taking money out of their RRSP or RRIF? If so please forward the following to them. If they want to re-contribute, they must do so before April 14, 2009
2008 RRIF minimums and 25% re-contributions
On November 27, 2008, the Federal government proposed legislative changes to the calculation of the 2008 required minimum withdrawal for RRIF, LIF and other locked-in RRIF plans (collectively known as a “RRIF”). The change allows the annuitant to re-contribute up to 25% of the 2008 minimum amount back to their RRIF (or to an RRSP if the annuitant is 71 years of age or younger at the end of the year in which the contribution is made) provided the RRIF annuitant received the full minimum amount in 2008.
Bill C-10 received Royal Assent on March 12, 2009 and the legislation implementing the Budget measures is now law.
This means that policyholders have until April 14, 2009 to re-contribute up to 25% of their 2008 RRIF minimum.
How to submit re-contributions
Contact your financial planner or institution and let them know that you would like to take advantage of this offer.
Tax receipts
• A 2008 RRIF re-contribution “receipt” (or RRSP receipt if applicable) will be issued to the annuitant
• To ensure that a 2008 RRIF re-contribution “receipt” (or RRSP receipt if applicable) is issued,
clients must indicate on the letter of direction/financial service form that they are making a recontribution.
More information on the legislative changes can be found on the CRA’s website:
http://www.cra-arc.gc.ca/whtsnw/tms/rrf-fq-eng.html
2008 RRIF minimums and 25% re-contributions
On November 27, 2008, the Federal government proposed legislative changes to the calculation of the 2008 required minimum withdrawal for RRIF, LIF and other locked-in RRIF plans (collectively known as a “RRIF”). The change allows the annuitant to re-contribute up to 25% of the 2008 minimum amount back to their RRIF (or to an RRSP if the annuitant is 71 years of age or younger at the end of the year in which the contribution is made) provided the RRIF annuitant received the full minimum amount in 2008.
Bill C-10 received Royal Assent on March 12, 2009 and the legislation implementing the Budget measures is now law.
This means that policyholders have until April 14, 2009 to re-contribute up to 25% of their 2008 RRIF minimum.
How to submit re-contributions
Contact your financial planner or institution and let them know that you would like to take advantage of this offer.
Tax receipts
• A 2008 RRIF re-contribution “receipt” (or RRSP receipt if applicable) will be issued to the annuitant
• To ensure that a 2008 RRIF re-contribution “receipt” (or RRSP receipt if applicable) is issued,
clients must indicate on the letter of direction/financial service form that they are making a recontribution.
More information on the legislative changes can be found on the CRA’s website:
http://www.cra-arc.gc.ca/whtsnw/tms/rrf-fq-eng.html
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