Hey Anthony! Thanks for the great question and welcome to the channel. Short Answer: it Depends... To determine the maximum amount that can be transferred to a locked-in plan, you need to use a specific formula. This formula involves multiplying your Annual Retirement Benefit by a Present Value Factor that is based on your age. Essentially, the Present Value Factor adjusts the value of your retirement benefit according to how it relates to your current age, allowing you to calculate the maximum allowable transfer amount accurately. Maximum Transfer = Annual Retirement Benefit × Present Value Factor (based on your age) I have included not links ( because it wont work) but searches you can google to articles that provide examples. advisor.ca understanding-maximum-transfer-value-rules Manulife also has a good example: The pension decision: to commute or not to commute? If you search those two articles you can get a better sense of what your max might be and what you can transfer into a LIRA and what is taxable.. Of course I would also suggest getting a statement from your employer, as it will detail everything you need to know about what can and cant be done - and would be much more reliable than trying to calculate it yourself. I hope this helps, thanks so much for the great question and support, as your interaction will help get this video out to many more viewers. Joe
Another good video Joe!
Thanks again! I very much appreciate your support as always!
What is the maximum transfer amount into Ontario-based LIRA and how is it determined?
Hey Anthony! Thanks for the great question and welcome to the channel.
Short Answer: it Depends...
To determine the maximum amount that can be transferred to a locked-in plan, you need to use a specific formula. This formula involves multiplying your Annual Retirement Benefit by a Present Value Factor that is based on your age. Essentially, the Present Value Factor adjusts the value of your retirement benefit according to how it relates to your current age, allowing you to calculate the maximum allowable transfer amount accurately.
Maximum Transfer = Annual Retirement Benefit × Present Value Factor (based on your age)
I have included not links ( because it wont work) but searches you can google to articles that provide examples.
advisor.ca understanding-maximum-transfer-value-rules
Manulife also has a good example:
The pension decision: to commute or not to commute?
If you search those two articles you can get a better sense of what your max might be and what you can transfer into a LIRA and what is taxable..
Of course I would also suggest getting a statement from your employer, as it will detail everything you need to know about what can and cant be done - and would be much more reliable than trying to calculate it yourself.
I hope this helps, thanks so much for the great question and support, as your interaction will help get this video out to many more viewers.
Joe