Locked-In Retirement Income Vehicles Transfers

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Evaluation

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Explain the age by which a locked-in retirement savings vehicle must be transferred to a locked-in retirement income vehicle.
  • Identify potential reasons why an individual may choose to transfer capital property into a locked-in retirement income vehicle.
    • Voluntary or involuntary termination of employment
    • Retirement
    • Death of the annuitant
    • Death of the annuitant’s current (or former) spouse
    • Termination of pension plan membership
    • Termination of pension plan
    • Voluntary choice by the annuitant 
  • Identify potential reasons why an individual may choose to transfer capital property out of a locked-in retirement income vehicle.
    • Retirement
    • Unlocking of locked-in assets
    • Death of the annuitant
    • Death of the annuitant’s current (or former) spouse
    • Voluntary choice by the annuitant 
  • Identify the types of plans from which capital property may be transferred tax-deferred into a locked-in retirement income vehicle. 
  • Identify the types of plans to which capital property may be transferred tax-deferred out of a locked-in retirement income vehicle.
  • Determine how each of these factors may impact the suitability of transferring capital property into a locked-in retirement income vehicle:
    • Withdrawal options
    • Tax impact
    • Impact of future withdrawals on government benefits
  • Evaluate how each of the factors may impact the suitability of transferring capital property into a locked-in retirement income vehicle. 
  • Determine how each of these factors may impact the suitability of transferring capital property out of a locked-in retirement income vehicle:
    • Cash flow needs
    • Withdrawal options
    • Tax impact
    • Government legislation (unlocking and transfer options)
  • Evaluate how each of the factors may impact the suitability of transferring capital property out of a locked-in retirement income vehicle.

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Evaluation

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Explain the age by which a locked-in retirement savings vehicle must be transferred to a locked-in retirement income vehicle.
  • Identify potential reasons why an individual may choose to transfer capital property into a locked-in retirement income vehicle.
    • Voluntary or involuntary termination of employment
    • Retirement
    • Death of the annuitant
    • Death of the annuitant’s current (or former) spouse
    • Termination of pension plan membership
    • Termination of pension plan
    • Voluntary choice by the annuitant 
  • Identify potential reasons why an individual may choose to transfer capital property out of a locked-in retirement income vehicle.
    • Retirement
    • Unlocking of locked-in assets
    • Death of the annuitant
    • Death of the annuitant’s current (or former) spouse
    • Voluntary choice by the annuitant 
  • Identify the types of plans from which capital property may be transferred tax-deferred into a locked-in retirement income vehicle. 
  • Identify the types of plans to which capital property may be transferred tax-deferred out of a locked-in retirement income vehicle.
  • Determine how each of these factors may impact the suitability of transferring capital property into a locked-in retirement income vehicle:
    • Withdrawal options
    • Tax impact
    • Impact of future withdrawals on government benefits
  • Evaluate how each of the factors may impact the suitability of transferring capital property into a locked-in retirement income vehicle. 
  • Determine how each of these factors may impact the suitability of transferring capital property out of a locked-in retirement income vehicle:
    • Cash flow needs
    • Withdrawal options
    • Tax impact
    • Government legislation (unlocking and transfer options)
  • Evaluate how each of the factors may impact the suitability of transferring capital property out of a locked-in retirement income vehicle.
Additional Knowledge Expected of CFP Professionals
  • Identify potential reasons why an individual may choose to transfer capital property into a locked-in retirement income vehicle.
    • Breakdown of the annuitant’s relationship
  • Identify potential reasons why an individual may choose to transfer capital property out of a locked-in retirement income vehicle.
    • Breakdown of the annuitant’s relationship
  • Explain the Canada Revenue Agency’s requirements for a tax-deferred transfer of capital property to or from a locked-in retirement income vehicle upon the breakdown of a relationship between spouses.
  • Estimate the tax impact of transferring capital property into a locked-in retirement income vehicle.
  • Estimate the tax impact of transferring capital property out of a locked-in retirement income vehicle.
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