# DCPP withdrawal rules Canada at age 55



## mshakil (Mar 2, 2014)

Hi, I want to withdraw amount from DCPP contribution at age 55 due to some emergency. Can I withdraw at age-55 and what will be the procedure and How much percent can withdraw from my contribution? Please advise. Thanks,


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## afulldeck (Mar 28, 2012)

DCPP are a registered plan so generally you cannot withdraw until you meet the retirement criteria. There maybe an emergency processes, but that will be provincially controlled. Where do you live?


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## mshakil (Mar 2, 2014)

I lives in Toronto, ON


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## GreatLaker (Mar 23, 2014)

Are you still in the pension or have you left the pension plan, in which case it will have been transferred to a Locked-in Retirement Account (LIRA)?

This link explains Unlocking LIRAs: How to get money out of your pension
This link explains Unlocking pension funds due to financial hardship

The jurisdiction rules for the pension depend more on the location of the employer's HQ, rather than your work location. Some pensions are federally registered, such as federal government, railways, telephone companies and other federally registered companies. Your pension administrator can tell you where the pension is registered. Here are the links for Ontario:
Locked-In Accounts
Pension Unlocking: Non-Hardship
Rules for Financial Hardship Unlocking


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## mshakil (Mar 2, 2014)

I am still contributing DCPP amount. But want to withdraw at age-55 and what will be the procedure and How much percent can withdraw from my contribution if I can withdraw? Is it possible?


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## Eclectic12 (Oct 20, 2010)

If you are still in the DCPP then then question is what the plan terms allows. 

The DCPP I was offered did not allow withdrawals until one retired. Some DCPP are described as allowing the employee contributions but not the employer contributions.
Basically YMMV where you need to read through the materials or ask your employer.





Understanding withdrawal restrictions


In my experience, plans with withdrawal restrictions operate more effectively than those without. Here are examples and variations of withdrawal restrictions.




retirehappy.ca





I can't help thinking that part of the emergency is the amount that is needed or you'd be looking for overtime or extra work to pay for it. If it is a sizeable amount, the problem with the DCPP withdrawal is that it will be added to your income and taxed.

Is there an option to fund the emergency from a TFSA?
If so, there are no tax consequences to withdrawals so that the full amount withdrawn can be used for the emergency.


Cheers


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## Yasehtor (Oct 12, 2018)

Talk with your Employer, HR Department or the Administrator of the DC plan. They should be able to give you all the information you need and show you in the plan documents what your plan allows.


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