New Locked-in Account Laws for Ontario

Posted on December 3, 2009 and updated November 4, 2010 in Life Insurance Canada News 2 min read

New legislation for locked-in accounts in Ontario means greater access for clients in the province with money locked-in to insurance plans and greater flexibility when it comes to managing their savings for retirement.

Rules for those who currently hold Life Income Funds (LIF) in Ontario are the following:

Owners of current Ontario LIF contracts will have a single opportunity to cash out or transfer an additional 25% of existing LIF funds into an RRSP or RRIF, but the owner must make the decision between Jan. 1 and Dec. 31, 2010.

Rules for those with new Life Income Funds (LIF) in Ontario are the following:

If one purchases a LIF in Ontario on or after Jan. 1, 2010, they will have a single chance to cash out or transfer up to 50% of the funds into an RRSP or RRIF, but the decision must be made within 60 days from the time the funds were transfered to an LIF.

If you need any further clarification, please don’t hesitate to call our office at 1-866-899-4849. 

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