knowledge topics
Locked-In Retirement Income Vehicles Transfers
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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
- Breakdown of the annuitant’s relationship
- 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
- Breakdown of the annuitant’s relationship
- 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.1
- 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.
- Explain how each of the factors may impact the suitability of transferring capital property into a locked-in retirement income vehicle, such as:
- 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.
- Estimate the tax impact of transferring capital property out of a locked-in retirement income vehicle.
- Explain how each of the factors may impact the suitability of transferring capital property out of a locked-in retirement income vehicle, such as:
- 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.
Glossary of Verbs (mouse over to see definition)
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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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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 judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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