How to Get Some of a Locked-In Retirement Fund

Locked-In Retirement Funds are retirement savings accounts offered to Canadian residents. LRIF plans are forms of Registered Pension Plans established by employers with employer contributions fully vested within five years of working for the employer. These accounts defer taxes and are transferable only to other approved locked-in account structures. Funds are locked-in until age 55 unless the plan participant qualifies for early distribution under special circumstances allowed by the province in which you live.

Things You'll Need

• Locked-In Retirement Fund statement

Instructions

1. Call the financial institution administrating your LRIF. Provide your identifying information including your Social Insurance Number, legal name and address.

2. Explain the reason you need to access the funds. Those experiencing financial hardship, divorce or terminal illness may be able to access part or all of the LRIF. Additional exceptions include becoming a non-resident of Canada or if the account falls below the balance threshold.

3. Ask whether you are eligible for early access and request the application form, Consent of the Superintendent of Financial Services.

4. Complete the application for the required amount, obtaining all required supporting documentation for your financial need as well as any spousal consent required.

Tips & Warnings

• Speak with a tax professional regarding the implications of accessing your LRIF. Doing so may exclude you from other government benefits and social assistance. Funds distributed from a LRIF are taxable, with appropriate taxes taken out at the time of distribution.

• Creditors have the ability to seize assets distributed from a LRIF.

References

• Financial Services Commission of Ontario: A Guide to Applying for Special Access
• Tax Tips: Unlocking Pension Funds