# Withdrawing small balance of Registered Pension Plan



## futuregrowth (Mar 5, 2012)

I've heard that it is possible to withdraw small balances from RPP, is this true? If so, up to how much and how would one go about doing this? I recently discovered a small amount of money in a RPP from an old job and would like to get access to it. 

Cheers!


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## Eclectic12 (Oct 20, 2010)

I've only heard of this for a Locked In Retirement Account (LIRA) that is small and where one proves financial hardship.

For a Defined Benefit pension - I've never heard of one allowing this. And usually within a short period of leaving, one is asked to decide whether to remain in the DB plan or transfer to a combination of LIRA and/or RRSP.

For any Defined Contribution plans I've had the details for - there is a substantial penalty for any any withdrawals.


The key is to contact the company or the financial institutions holding the RPP. There is a lot of differences between plans so getting the details is best.

Here is a link that might help:
http://retirehappyblog.ca/unlocking-pension-money-getting-money/


Cheers


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## OhGreatGuru (May 24, 2009)

I think in recent years most provinces have passed laws allowing you to collapse LIRA's that have small amounts in them, without having to prove financial hardship. But the limits vary between jurisdictions, (~10K-25K) and may have other conditions, such as age.

See http://www.fsco.gov.on.ca/en/pensions/lockedin/Pages/nonhardshipunlocking.aspx for example for Ontario.

Otherwise i agree with Eclectic12 - you have to talk to the institution holding the pension first.


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## futuregrowth (Mar 5, 2012)

OhGreatGuru said:


> I think in recent years most provinces have passed laws allowing you to collapse LIRA's that have small amounts in them, without having to prove financial hardship. But the limits vary between jurisdictions, (~10K-25K) and may have other conditions, such as age.
> 
> See http://www.fsco.gov.on.ca/en/pensions/lockedin/Pages/nonhardshipunlocking.aspx for example for Ontario.
> 
> Otherwise i agree with Eclectic12 - you have to talk to the institution holding the pension first.


How does one go about collapsing the account? Do you talk to govt first or the institution?


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## Eclectic12 (Oct 20, 2010)

futuregrowth said:


> How does one go about collapsing the account? Do you talk to govt first or the institution?


I'd think the first step is to talk to the company that holds the RPP. When I tried to transfer my small LIRA to my broker - the first question they asked was whether the LIRA was governed by the province or the feds before they'd discuss how to transfer it.

Some things to find out are whether the province or feds govern the RPP, how much is in the RPP and what type of RPP (ex. if it is Defined Contribution, there may be the option to transfer the contents to your RRSP, at which point you can withdraw whenever you want).

Maybe someone else who has withdrawn from a RPP can provide more info.


Cheers


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