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thatangela

Has anyone unlocked a LIRA?

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Filed: Citizen (apr) Country: Canada
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I worked for a college in Calgary for a couple of years and, since it's government funded, my pension account had to roll into a LIRA. I've read federal law allows the LIRA account holder to access the funds once non-residency is ascertained.

Has anyone done this and how did it go?

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Filed: Citizen (apr) Country: Canada
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I will be interested to hear - at the time I left in 2007, I was told there was no unlocking it...but I believe Canadian laws may have changed.

I imagine if unlocking is allowed you'd take an ugly tax hit and then possibly a tax hit depending on how much you would be bringing into the US. At the time I was told there is no direct transfer from your Canadian retirement fund into a US 401K. Obviously the Cdn government wants their cut since this was income earned in Canada. At best I think it would go into a post tax retirement fund here in the US.

If you're young I doubt its an issue but it depends on how much you stand to lose

I worked for a college in Calgary for a couple of years and, since it's government funded, my pension account had to roll into a LIRA. I've read federal law allows the LIRA account holder to access the funds once non-residency is ascertained.

Has anyone done this and how did it go?

Wiz(USC) and Udella(Cdn & USC!)

Naturalization

02/22/11 - Filed

02/28/11 - NOA

03/28/11 - FP

06/17/11 - status change - scheduled for interview

06/20?/11 - received physical interview letter

07/13/11 - Interview in Fairfax,VA - easiest 10 minutes of my life

07/19/11 - Oath ceremony in Fairfax, VA

******************

Removal of Conditions

12/1/09 - received at VSC

12/2/09 - NOA's for self and daughter

01/12/10 - Biometrics completed

03/15/10 - 10 Green Card Received - self and daughter

******************

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Filed: Citizen (apr) Country: Canada
Timeline

I will be interested to hear - at the time I left in 2007, I was told there was no unlocking it...but I believe Canadian laws may have changed.

I imagine if unlocking is allowed you'd take an ugly tax hit and then possibly a tax hit depending on how much you would be bringing into the US. At the time I was told there is no direct transfer from your Canadian retirement fund into a US 401K. Obviously the Cdn government wants their cut since this was income earned in Canada. At best I think it would go into a post tax retirement fund here in the US.

If you're young I doubt its an issue but it depends on how much you stand to lose

I like to think I'm young, although my birth certificate tells a different story. ;)

Yes, federal law changed in 2008 to allow for access to your LIRA. There will be a tax hit but if I can get through the hoop-jumping, I don't have to roll it into another retirement fund. I can have the money deposited into any bank account.

Then I can use the money to close off my debt here in Canada (or at least pay back my fiance for it).

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Filed: Citizen (apr) Country: Canada
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Ah, ok - I guess the question is how much tax is taken. If you use it to for something other than retirement afterwards you don;t have too many worries. For me, it would mean I would lose a portion of 10 yrs worth of retirement savings to taxes (I was 37 when I left).

Would you have to file an income tax return for the year you unlocked your LIRA? I haven't needed to file a Cdn tax return since I left.

I can't decide if it's worth it or not. If I put it in post tax here in the US

Wiz(USC) and Udella(Cdn & USC!)

Naturalization

02/22/11 - Filed

02/28/11 - NOA

03/28/11 - FP

06/17/11 - status change - scheduled for interview

06/20?/11 - received physical interview letter

07/13/11 - Interview in Fairfax,VA - easiest 10 minutes of my life

07/19/11 - Oath ceremony in Fairfax, VA

******************

Removal of Conditions

12/1/09 - received at VSC

12/2/09 - NOA's for self and daughter

01/12/10 - Biometrics completed

03/15/10 - 10 Green Card Received - self and daughter

******************

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Filed: IR-1/CR-1 Visa Country: Canada
Timeline

Canadians Visiting the USA while undergoing the visa process, my free advice:

1) Always tell the TRUTH. never lie to the POE officer

2) Be confident in ur replies

3) keep ur response short and to the point, don't tell ur life story!!

4) look the POE officer in the eye when speaking to them. They are looking for people lieing and have been trained to find them!

5) Pack light! No job resumes with you

6) Bring ties to Canada (letter from employer when ur expected back at work, lease, etc etc)

7) Always be polite, being rude isn't going to get ya anywhere, and could make things worse!!

8) Have a plan in case u do get denied (be polite) It wont harm ur visa application if ur denied,that is if ur polite and didn't lie! Refer to #1

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Filed: Citizen (apr) Country: Canada
Timeline

This may help as well http://www.fsco.gov.on.ca/en/pensions/lockedin/Pages/nonhardshipunlocking.aspx

See the comment entitled:

Wiz(USC) and Udella(Cdn & USC!)

Naturalization

02/22/11 - Filed

02/28/11 - NOA

03/28/11 - FP

06/17/11 - status change - scheduled for interview

06/20?/11 - received physical interview letter

07/13/11 - Interview in Fairfax,VA - easiest 10 minutes of my life

07/19/11 - Oath ceremony in Fairfax, VA

******************

Removal of Conditions

12/1/09 - received at VSC

12/2/09 - NOA's for self and daughter

01/12/10 - Biometrics completed

03/15/10 - 10 Green Card Received - self and daughter

******************

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Filed: Citizen (apr) Country: Canada
Timeline

I didn't see any time requirement on anything I read about an Alberta LIRA.

This thread was helpful,so thanks Flames:

http://forums.serbinski.com/viewtopic.php?t=4332&highlight=lira

First, you need to habve been reporting the existence of the LIRA to IRS every year on form 8891 and FBAR. I hope you have been doing this. If not you need to back-file these for each year you filed a 1040.

Only ater that you can approach your financial instittion and request that you be allowed to break the LIRA because you are non-resisnrt. You will need to fill an NR73 and submit this to CRA, and wait for their determination that indeed you are non-resident. Once this is done, bank will allow you to cash out LIRA; you will pay 15% flat tax withheld.

You will then report the entire income on a final 8891 and your 1040 and use the 25% tax as a foreign tax credit on form 1116.

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Filed: IR-1/CR-1 Visa Country: Canada
Timeline

Every once in awhile I'm useful.....not very often though,lol

Canadians Visiting the USA while undergoing the visa process, my free advice:

1) Always tell the TRUTH. never lie to the POE officer

2) Be confident in ur replies

3) keep ur response short and to the point, don't tell ur life story!!

4) look the POE officer in the eye when speaking to them. They are looking for people lieing and have been trained to find them!

5) Pack light! No job resumes with you

6) Bring ties to Canada (letter from employer when ur expected back at work, lease, etc etc)

7) Always be polite, being rude isn't going to get ya anywhere, and could make things worse!!

8) Have a plan in case u do get denied (be polite) It wont harm ur visa application if ur denied,that is if ur polite and didn't lie! Refer to #1

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Thanks for alerting me to the fact that this was even a possibility!! I have a smallish LIRA and I thought that money was just going to be socked away forever (or at least 30+ years) in a country I'll no longer live in and I didn't know if I'd ever end up getting it. This is very good news. :)

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