Learn about the various unlocking's, and how to submit the requests
Unlocking Types
One-time 50% unlocking (Non Alberta):
This type of unlocking will transfer 50% of the funds in the LIF into an Registered Retirement Savings Plan (RRSP) or an Registered Retirement Income Fund (RIF). Cash can then be withdrawn, from either of these vehicles, subject to any applicable income tax rules.
For the LIF to be eligible to be 50% unlocked, the account holder:
- Must be 55 years of age or older within the calendar year; and,
- exercises the option within 60 days of when the funds are initially deposited in the Life Income Fund (LIF);
One-time 50% unlocking (Alberta)
This type of unlocking is only available for LIRA's registered in Alberta
This type of unlocking will transfer 50% of the funds in the LIRA into an Registered Retirement Savings Plan (RRSP) or an Registered Retirement Income Fund (RIF). Cash can then be withdrawn, from either of these vehicles, subject to any applicable income tax rules.
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A one-time 50% unlocking is permitted from the Locked-In Retirement Account (LIRA) account only and the plan holder must be at least 50 years of age.
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The remaining 50% balance from the LIRA must be transferred to a LIF or a Life Income Type Benefit Fund (LITB), which will then pay income to the annuitant each year.
Financial hardship:
This type of unlocking is best suited for your client if they are:
- experiencing financial difficulties because of low income; or,
- high medical or disability-related costs relative to income;
The funds may be withdrawn as cash, or transferred to a tax-deferred savings vehicle such as a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF), subject to any applicable income tax rules.
Non-residency:
If your client has ceased to be a resident of Canada for at least 2 calendar years or if they have ceased employment with the sponsor of that pension plan
If the following criteria are met, then a person's pension may be withdrawn in cash or transferred to a tax-deferred savings vehicle such as an RRSP or a RRIF subject to any applicable income tax rules:
Shortened life expectancy:
If a person has a shortened life expectancy (as certified by a physician) due to a physical or mental condition, the funds may be withdrawn in cash or transferred to a tax-deferred savings vehicle such as an RRSP or an RRIF subject to any applicable income tax rules.
Age 55 and over - Small account balance unlocking
This unlocking type is best suited for your client if the total value of all of assets in all of their locked-in RRSPs, restricted locked-in RRSPs, LIFs, and RLIFs are less than or equal to 50% of the YMPE (50% of $68,500 which is $34,250 for 2024)
- The funds may be withdrawn as cash, or transferred to a tax-deferred savings vehicle, such as an RRSP or an RRIF subject to any applicable income tax rules.
Required forms
For federal locked-in plans, please refer to the following link based on the nature of the unlocking request: Federal Forms
Unlocking from a federal LIF to an RRSP requires a T2030
For provincial locked-in plans, please refer to the following links based on the province that the plan is registered in: British Columbia, Manitoba, New Brunswick, Ontario, Saskatchewan, Nova Scotia, and Newfoundland.
How to submit the request
50% Unlocking (Non-Alberta)
First, find the client's CRM Contact Record page by searching contact name in the search bar. Navigate to the Servicing (Service Request) tab on your clients contact card and select Account Administration.
Step: 1
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Select Special handling
Step 2:
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Select 50% Unlocking (Non-Alberta)
Step 3:
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Select the LIF account
Step 4:
- Select either the RRSP or RIF account.
Step 5:
- Attach the applicable documents depending on the accounts legislation
- Submit the request
For federal locked-in plans, please refer to the following link based on the nature of the unlocking request: Federal Forms
Service Standard
For 50% unlocking (Non-Alberta) requests are generally completed in 4 business days
50% Unlocking (Alberta)
First, find the client's CRM Contact Record page by searching contact name in the search bar. Navigate to the Servicing (Service Request) tab on your clients contact card and select Account Administration.
Step: 1
-
Select Special Handling
Step 2:
-
Select 50% Unlocking (Alberta)
Step 3:
-
Select the LIRA account
Step 4:
- Select either the RRSP or RIF account.
Step 5:
- Attach the applicable documents depending on the accounts legislation
- Submit the request.
Service Standard
For 50% unlocking (Alberta) requests are generally completed in 4 business days
Unlocking - All other types
First, find the client's CRM Contact Record page by searching contact name in the search bar. Navigate to the Servicing tab on your clients contact card and select Account Administration.
Step: 1
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Select Special handling
Step 2:
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Select Unlocking
Step 3:
- Select the relevant locked in account
Step 4:
- Select the Withdrawal Type
- EFT-Out
- Withdraw to Investment Account
Step 5:
- If the Withdrawal Type is EFT-Out
- Select the Offset Account
- If the Withdrawal Type is to investment account
- Select the associated receiving account
Step 6:
- Select the Bank account (Skip this step if you did not choose EFT-Out)
Step 7:
- Attach the applicable forms
For federal locked-in plans, please refer to the following link based on the nature of the unlocking request: Federal Forms
- Submit the request and track your ticket
Service Standard
Upon submission, the assets will be sold on the next available Friday, with settlement occurring four business days later. Then the unlocking will be processed which takes 2 business days.