knowledge topics
Locked-In Retirement Savings Vehicles Withdrawals
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify opportunities available in some jurisdictions for withdrawing funds from a locked-in retirement savings vehicle, such as:
- Financial hardship
- Shortened life expectancy
- Small balance
- Non-residency
- Spousal or child maintenance enforcement orders
- Identify the rules for withdrawing funds from a locked-in retirement savings vehicle.
- Identify the current withholding tax rates for cash withdrawals from a locked-in retirement savings vehicle.1
- By residency
- By amount
- Explain how each of the factors may impact the suitability of withdrawing from a locked-in retirement savings vehicle, such as:
- Tax impact
- Administrative fees
- Loss of Registered Retirement Savings Plan contribution room
- Loss of asset growth within locked-in retirement savings vehicle
- Cash flow needs
- Impact on government benefits
- Evaluate how each of the factors may impact the suitability of withdrawing from a locked-in retirement savings vehicle.
- Calculate the withholding tax for a cash withdrawal from a locked-in retirement savings vehicle.
- Estimate the tax impact resulting from a cash withdrawal from a locked-in retirement savings vehicle.
- Explain how taxes payable on a cash withdrawal from a locked-in retirement savings vehicle may differ from the withholding taxes collected by a financial institution.
- Calculate the impact on current and projected net worth of a withdrawal from a locked-in retirement savings 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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