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Additional 25 per cent Withdrawals or Transfers from New Life Income Funds (LIFs)

This page provides frequently asked questions that relate to additional 25 per cent withdrawals or transfers from new LIFs.

 

 

Q1. Who is allowed to apply for an additional 25 per cent withdrawal or transfer from a New LIF and what are the circumstances?

 

A1. To apply for an additional 25 per cent withdrawal or transfer from a New LIF, you must have transferred money into your New LIF on or before December 31, 2009.  The additional withdrawal or transfer is based on 25 per cent of the total market value of all assets that were transferred into the New LIF on or before December 31, 2009.  In addition, the application must be submitted between January 1 and December 31, 2010.  - 05/10   

 

 

Q2. How do I apply to withdraw or transfer an additional 25 per cent from my New LIF?

 

A2. To apply, you must complete FSCO pension Form 5.1.1 and submit it to the financial institution that holds your New LIF.  Please do not send the application to FSCO.  - 05/10  

 

 

Q3. How do I determine the "total market value of all assets" for the additional 25 per cent withdrawal or transfer?

 

A3. The “total market value of all assets transferred into the fund on or before December 31, 2009” is based on the date the money was transferred into the New LIF.  To determine that date, contact your financial institution.  Note that any increase or decrease in the value of the New LIF after the transfer was made will not be taken into account.

Example: If you transferred $100,000 into a New LIF in 2009 and then applied for an additional 25 per cent withdrawal in January 2010, the 25 per cent is based on $100,000.  - 05/10  

 

 

Q4. I bought a New LIF in 2009, but missed the chance to withdraw or transfer 25 per cent of the money that was transferred into it.  When I apply for the additional 25 per cent withdrawal or transfer in 2010, can I also apply for the first 25 per cent?

 

A4. No.  You cannot also apply for the first 25 per cent withdrawal or transfer, since that application must have been submitted within 60 days of the transfer.  That time period cannot be extended.  - 05/10   

 

 

Q5. I transferred money into a New LIF in 2009 and withdrew 25 per cent of the funds. Since my spouse consented to that withdrawal, does he/she also need to consent to the additional 25 per cent withdrawal or transfer?

 

A5. Yes, your spouse must consent to your application to withdraw or transfer an additional 25 per cent of the funds from your New LIF.  - 05/10   

 

 

Q6. I transferred $40,000 into a New LIF with Company A in July 2009, and then withdrew $10,000 (25 per cent of the funds) in September 2009. In January 2010, I transferred $30,000 (the full amount of the funds from the New LIF) to a New LIF with Company B. Can I apply to withdraw or transfer an additional 25 per cent from the New LIF with Company B in 2010?

 

A6. No. The amount you can withdraw or transfer is based on the total of all amounts that were transferred into the New LIF with Company B before 2010. In this example you did not transfer any money into the New LIF with Company B before January 1, 2010. If you wanted to withdraw or transfer an additional 25 per cent, you should have applied for a withdrawal or transfer from the New LIF with Company A before the money was transferred to the New LIF with Company B. - 05/10 

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FAQs on Rules for Ontario Locked-In Accounts


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