# TD gic plus maturing



## semigeezer (Oct 21, 2014)

My wife has a TD GIC-PLUS term deposit maturing soon. It was acquired with locked-in funds. The maturity amount will only be around $6,000-7,000. Her only other income is from CPP and OAS (she is 65 now). 

What are her options as far as withdrawing funds from the maturity amount given the MIN and MAX limits imposed on LIF type funds? Will she be limited to taking "cash" at the 5-ish percent limit and the rest must go to some other LIF type account or are there other options other than claiming financial hardship exceptions? Is there any exception based on such a small maturity amount to keep from the hassle of setting up a new LIF type investment?

Thanks in advance.


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## OptsyEagle (Nov 29, 2009)

Most likely she can withdraw it all under "financial hardship" rules or some other option the various government have come up with. It will depend on which provincial/federal jurisdiction the locked in account is regulated by.


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## semigeezer (Oct 21, 2014)

One other point is that we do a pension income "split" from my RIF/LIF accounts that would add to her income for tax purposes. We do this to maximize our taxable incomes but keep them within the lowest tax bracket. Would that split amount impact any financial hardship claim? I'm not thinking of going that route since I'm not familiar with any repercussions.


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## fireseeker (Jul 24, 2017)

semigeezer said:


> What are her options as far as withdrawing funds from the maturity amount given the MIN and MAX limits imposed on LIF type funds? Will she be limited to taking "cash" at the 5-ish percent limit and the rest must go to some other LIF type account or are there other options other than claiming financial hardship exceptions? Is there any exception based on such a small maturity amount to keep from the hassle of setting up a new LIF type investment?


It will depend on the province you live in. In Ontario, there are rules that allow small accounts to be collapsed.

Ontario Pension Unlocking: Non-Hardship 

How To Unlock An Ontario Locked-In Retirement Account – LIRA, LRIF – 2019 Rules


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## OptsyEagle (Nov 29, 2009)

Pension splitting is not income. I doubt anyone is going to look into it anyway.


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## semigeezer (Oct 21, 2014)

Thanks fireseeker, I think you have provided the source I was looking for. It appears that the full maturity amount can be withdrawn under one of the provisions since YMPE is $55,900:

_you are at least 55 years old and the total value of the funds in all of your locked-in accounts is less than 40% of the Year's Maximum Pensionable Earnings (YMPE) (use Form 5)_

OptsyEagle, I added the pension income splitting info since I didn't know if that might impact things.


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