LIF is a type of registered retirement income fund that is used to hold pension funds, and eventually payout retirement income in Canada. It cannot be withdrawn in a lump sum; rather, owners must use the fund in a manner that supports retirement income for their lifetime.

Congratulations Brother. You're already (in)famous on the web.

I thought I told you guys up in Yellowknife to lay off the Listerine and aftershave lotion.

http://www.419baiter.com/_scam_emails/0-rzy-09-07a/scam-email-047301.shtml

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Before proceeding any further, you must determine with absolute certainty whether your LIRA ( Locked-in Retirement Account ) was transferred to a LIF ( Life Income Fund ) as you maintain or to a RLIF ( Restricted Life Income Fund ) as Linh, your present fund manager, maintains. The difference is huge.

Contracts entered into after May 8, 2008 must include the option of permitting funds in a LIF to be transferred into a new type of locked-in retirement income fund called a Restricted Life Income Fund ( RLIF )..

In a year that you turn 55 or in any subsequent year,you will be allowed, upon the creation of a RLIF to transfer 50% of the RLIF's value into a tax-deferred plan with no maximum annual withdrawal limit ( that is, either an RRSP, an RRIF ) or a straight cash withdrawal as long as this transfer to a RRSP or a RRIF happens within 60 days of the creation of the RLIF. After this point, the RLIF will be subject to the same limits upon maximum and minimum annual withdrawals and to the same limits on extraordinary withdrawals as a LIF.

You will not be permitted to transfer the remaining funds in a RLIF back to a LIF, nor can these monies be transferred back to a locked-in RRSP. Should you wish to transfer your funds in a RLIF back to a locked-in savings vehicle, ( for example, you do not want a steady stream of retirement income at this time ), a new instrument called a Restricted Locked-in Savings Plan (RLSP ) has been provided for into which funds from a RLIFcan be transferred.

Funds transfers from a RLSP by the holder will only be permitted if they are into another RLSP, into a RLIF, into a life annuity or under certain circumstances, to a pension plan if the pension plan permits such a transfer.

Funds transfers from a RLIF by the holder will only be permitted into another RLIF, into a RLSP or into a life annuity.

These changes made after May 8, 2008 will ensure that the 50% unlocking provision will only be applied once by any individual on any one locked-in fund.

In summary, it is imperative that you follow the procedures as I have detailed above. Otherwise, you will not be able to unlock your RLIF.

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Educating one Consumer at a time

My bank says that I can't unlock my LIF

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Hello everyone,

My bank (RBC), is restricting me from converting my LIF, essentially un-locking the funds, to 50% RRSP and turning the balance into an RLIF. I've copied the correspondence so that someone with a better understanding than I can comment on what was written. I have perused the Pension Act which doesn't seem to have any of the restrictions referred to in her e-mail but I may have missed something , So, if anyone can validate Linh's perspective or tell me something different I'd surely appreciate it. The e-mail from Linh, my present fund manager and the email she referred to are copied below.

I am over 55, took out my pension plan August 2009, creating a LIRA and then a LIF simply want to unlock 50% and place it an RRSP which I can then withdraw from.

Here's my last correspondence with the bank that suggests that once I've opened up my LIF (all documents suggest its a LIF even though the author, linh, suggests its an RLIF. I think I see where she gets this idea-see e-mail from Melissa below where she talks about reconverting a file to maintain its RLIF options.....Alex, could you take a look at what Linh, my RBC fund person has said to refuse my request and see if she has a valid point.....and that I will have to resort to non-resident status to get access to my funds....thanks...

Hi Brian,

I took the time to read your correspondence with DesJardins. Since your account was opened after November 2008, the new rules should have applied at that point already. DesJardins should have informed you of the 50% unlocking option for you to exercise at the time of opening. If you look at point #3 from Melissa's email, the amount was kept in an RLIF (Restricted Life Income Fund); meaning it is restricted with no further changes that can be made. So the funds that were transferred in to RBC, were they in the form of a RLIF? It looks like we may not be able to assist you with this as the federal rules clearly state that no unlocking can be done if the proceeds orginated from an RLIF.

Thanks,

Linh

E-mail From Melissa (former fund manager from an Ottawa bank) re:first opening of my pension plan

Hi Brian,

Here's what needs to be done for you to access your money.

1- We will convert your LIRA into a LIF. We will then withdraw your ''maximum allowed''. The amount is more significant that we I originally thought it would be : approximatly $ 9863.91. That amount will be transfered in your RRSP account. Please sign the application forms for the LIF and the RRSP.

2- We will do a withdrawal in the RRSP. The maximum will be the available amount (approximatly $ 9863.91). Remember that the withdrawal is taxable.

Please write the amount that you wish to withdraw and sign the form.

RRSP withdrawal

3- After this transaction will be completed, we will reconvert the LIF in the LIRA. This will allow you to keep the RLIF option on the account.

Please sign the documents and return scanned as soon as possible. (First one is RRSP application, second is LIF application and third is RRSP withdrawal.)

All posts are greatly appreciated,

Brian