Locked-In Retirement Savings Vehicles Transfers
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Determine
To ascertain / to come to a decision, such as by investigation or reasoning
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Identify potential reasons why an individual may choose to transfer capital property into a locked-in retirement savings 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 savings vehicle.
- Retirement
- Unlocking of locked-in assets
- Death of the annuitant
- Voluntary choice by the annuitant
- Identify the types of plans from which capital property may be transferred tax-deferred into a locked-in retirement savings vehicle.
- Identify the types of plans to which capital property may be transferred tax-deferred out of a locked-in retirement savings vehicle.
- Identify that property transferred into a locked-in retirement savings vehicle must adhere to the regulations and pension legislation of the jurisdiction in which the plan is regulated.
- Determine how each of these factors may impact the suitability of transferring capital property into a locked-in retirement savings 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 savings vehicle.
- Determine how each of these factors may impact the suitability of transferring capital property out of a locked-in retirement savings 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 savings 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.
- Identify potential reasons why an individual may choose to transfer capital property into a locked-in retirement savings 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 savings vehicle.
- Retirement
- Unlocking of locked-in assets
- Death of the annuitant
- Voluntary choice by the annuitant
- Identify the types of plans from which capital property may be transferred tax-deferred into a locked-in retirement savings vehicle.
- Identify the types of plans to which capital property may be transferred tax-deferred out of a locked-in retirement savings vehicle.
- Identify that property transferred into a locked-in retirement savings vehicle must adhere to the regulations and pension legislation of the jurisdiction in which the plan is regulated.
- Determine how each of these factors may impact the suitability of transferring capital property into a locked-in retirement savings 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 savings vehicle.
- Determine how each of these factors may impact the suitability of transferring capital property out of a locked-in retirement savings 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 savings vehicle.
Additional Knowledge Expected of CFP Professionals
- Identify potential reasons why an individual may choose to transfer capital property into a locked-in retirement savings 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 savings vehicle.
- Breakdown of the annuitant’s relationship
- Explain the Canada Revenue Agency’s requirements related to tax-deferred transfers of capital property to or from a locked-in retirement savings vehicle upon the breakdown of a relationship between spouses.
- Identify possible outcomes that may occur (based on jurisdiction) to divide property held within a locked-in retirement savings vehicle due to the breakdown of a relationship.
- Equalization payment in cash from locked-in retirement vehicle to the current or former spouse of the annuitant
- Equalization payment to a similar locked-in retirement savings or income vehicle belonging to the current or former spouse of the annuitant
- Equalization payment to a corresponding retirement savings or income vehicle belonging to the current or former spouse of the annuitant
- Equalization payment to an insurance company to purchase a life annuity payable to the current or former spouse of the annuitant
- Estimate the tax impact of transferring capital property into a locked-in retirement savings vehicle.
- Estimate the tax impact of transferring capital property out of a locked-in retirement savings vehicle.
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