We discussed in other articles under what rules you may or may not be able to withdaw funds from your locked-in plan. For most people the amounts allowed are usually insufficient. We have found that in our experience most people’s plan value is between 35 to 50 thousand. In this case it is. It is possible to sometime combine different unlocking exemptions together to maximise the total amount that you can unlock. Let’s look at 2 different scenarios
Jim has a a Federal LRSP worth $45,000.00. Jim just turned 55. This means that Jim qualifies for the one time 50% unlocking allowing to unlock up to $22,500 form his plan which leave him with the exact same amount that is still locked. However once that Jim does the 50% unlocking and that his plan balance is $22,500 then Jim also qualifies for the 100% low balance unlocking since his plan is worth less than $23,480.00 that the law states can be unlocked under the low balance exemption. Combining the one time 50% unlocking PLUS the low balance unlocking exemption allows Jim to cash out his full plan balance.
Cindy is 35, has a BC LIRA worth $40,000.00 and she recently left her job to start her own business. Because she voluntarily left, Cindy will not qualify for Employment Insurance. Like a lot of entrepreneurs, Cindy doesn’t expect her business to be profitable in the first year and to be able to pay herself a salary. Cindy can then realistically apply for financial hardship expecting her salary to be zero in the next 12 months allowing her to unlock $29,000. Leaving a balance of $11,000.00 in her plan which falls under the low balance at any age unlocking rules for BC which means that Cindy can also unlock this $11,0000 allowing her to unlock the full amount.
Ok what if you are one of the lucky one who has a much bigger locked-in pension plan. Let’s say you have a plan worth $150,000 and you want to unlock it all or a good portion of it. It does get more complicated and more difficult but we invite you to fill out our “can you unlock” tool. You will get instant results as to what you can do and some potential strategies. Then one of our unlocking expert will review your result and see if they have a more sophisticated strategies to assist you. There is no cost and no obligation unless you decide to use our services to assist you in unlocking whatever amount possible. If you decide to hire us, we will fill out all the complicated government forms for you for a low price of $149.99* and we will also provide you with an easy to understand, step by step guide telling you where to send each form, which forms need to be authorized, and any additional steps you must undertake such as obtaining medical note or proof of eviction etc. We guarantee no mistakes and we guarantee that if you follow our instructions and hire us that you will be able to unlock what our “can you unlock” simulator estimates or your money back.
