# Unlocking Pension Funds



## Mr. Anonymous (Mar 17, 2015)

Hi I’m obviously new here and just need some guidance with regards to my locked in pension that I have.

I have over 80K in a locked LIRA/pension fund and was looking in to unlocking it later this year I’m not near the age of retirement, actually I’m not even in my 40’s but I am not living in Canada. (I moved to and live in the country that my wife was born in and have no property in Canada)

I read that I can unlock the total amount of my locked LIRA/pension funds as a non-resident of Canada (designated as such by CRA) & have been out of Canada for two years. 

I have a few questions regarding this. I do know that the government will take 25% of my money under this rule. (DAMN!!!) but okay.

I haven’t submitted the NR73 form to CRA that officially declares me as a non-resident. When is the best time to send submit that form?

I should mention that I do owe just under $3000.00 CAD in taxes to CRA. Will this impact on me unlocking my money?

Is there any specific way, method or documents that I have to apply for the money to be released by the bank?

Is there anything else that I should know or be aware of before using this method of unlocking my funds? Or is there:emptiness: guidance anyone can give me with regards to the process of unlocking my funds using this method?

Thank in advance

Mr. Anonymous


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## Mr. Anonymous (Mar 17, 2015)

Anyone???


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## Eclectic12 (Oct 20, 2010)

Mr. Anonymous said:


> ... I have over 80K in a locked LIRA/pension fund and was looking in to unlocking it later this year I’m not near the age of retirement, actually I’m not even in my 40’s but I am not living in Canada. (I moved to and live in the country that my wife was born in and have no property in Canada) ...


I doubt many will know ... especially since likely those with knowledge will be in "Retirement" or "Taxation" section.

Have you maintained any secondary residential ties? 
A home is one of the top weighted factors but thing like bank accounts etc. will also affect this.
http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html




Mr. Anonymous said:


> ... I read that I can unlock the total amount of my locked LIRA/pension funds as a non-resident of Canada (designated as such by CRA) & have been out of Canada for two years...
> I haven’t submitted the NR73 form to CRA that officially declares me as a non-resident. When is the best time to send submit that form?
> I should mention that I do owe just under $3000.00 CAD in taxes to CRA. Will this impact on me unlocking my money?


No idea ... but if you owe, I'd want to pay asap as the interest and penalties for not paying add up quickly.

Then too, if you've emigrated - did you have any property that is deemed to be sold as of the date you left? 
There may be more than a $3K bill owing.



> When you leave Canada, you are considered to have disposed of certain types of property at their fair market value and to have immediately reacquired them for the same amount. This is called a deemed disposition, and you may have to report a capital gain.


http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html


The other question is what legislation is the LIRA under? 
Is it provincial or federal?

If this is under the Ontario legislation, this link says the starting point is CRA. I'd expect CRA will want their money plus interest and penalties before moving forward.
http://www.fsco.gov.on.ca/en/pensions/lockedin/faq/Pages/nonresident.aspx




Mr. Anonymous said:


> ... Is there any specific way, method or documents that I have to apply for the money to be released by the bank?


I suspect most are Canadian residents so there might not a lot of feedback. You might have better luck on a board that has a forum for Canadian ex-pats.


Either way, it would seem to me the starting point is to have CRA register you as a non-resident as that is the rule you are trying to use to unlock the LIRA.


Cheers


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## OnlyMyOpinion (Sep 1, 2013)

I'm not familiar with the required steps to unlock your LIRA if the intent is taking the cash out of Canada and you are already a nonresident. As Eclectic notes, you are dealing with provincial legislation re unlocking rules. I would suggest you begin by asking the institution that you have your LIRA with, and check the provincial regs (they come up with Google searches), and lastly, pay the tax money you owe whether it affects your LIRA unlocking it or not. 
You won't get any sympathy or guidance if your intention is to bugger off leaving unpaid debts.


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