THE 360 NEWSLETTER

Reminder – RRSP to RRIF Transfers at 71

Best practices October 20, 2022
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Following the September 22, 2022 communication, we would like to remind you that holders of nominee RRSPs or LIRAs/Locked-in RRSPs who will have reached age 71 by December 31, 2022 must transfer their accounts to a RRIF or LIF before  year end.

Nominee RRSP to RRIF Transfers

We encourage you to process these transfers directly in Univeris for all your impacted clients by no later than November 25, 2022. This will provide a window to ensure timely processing of these transactions.

As outlined in Administrative Procedure # 51 – Internal Transfers in Cash or in Kind Between Two Investia Nominee Accounts, transfers can be processed in kind and in cash but also, good news to help you in your business practice, starting this year, you will be able to make your cash transfers.

To enable this type of transfer, please upload the following documents to Imaging* for recording in the clients’ files:

  • Investia Nominee Account Application Form (mandatory) signed by the client;
  • Order Instruction Form or Internal Transfer Form (Investia Nominee Accounts) with instructions to transfer the account (e.g., RRSP/LIRA #123 to RRIF/LIF #345).

*Unless special instructions apply, in which case please send the special instructions documents to Head Office for processing (“Processing” option in the Secure File Upload Tool on the Advisor Centre).

Please note that the only transfers which cannot be processed within your office are those for GICs, WVN funds, Covington funds (or funds with a market value at 0), exchange traded funds (“ETF”) and US cash available in cash account. These transfers will need to be made through Investia’s Head Office. To do so, please fax or upload the internal transfer form (F55-100A) to Investia so that we can process these transfers.

Nominee LIRA or Locked-in RRSP to a Nominee LIF Transfers

For locked-in RRSPs/LIRAs, you may proceed with the transfer to a LIF, while ensuring that the legislation remains the same. Once again, please enter these transfers into Univeris for your clients by no later than November 25 to ensure timely processing of these transactions.

Common Issues Encountered when Processing Transfers

RRIF/LIF plan not opened

Create the plan and obtain the nominee NCAF signed by the client

KYC not updated (stale dated)

Obtain a KYC Update Form and update your KYC in Univeris

GIC/ETF/WVN/U$ cash available

Transfer all other positions and submit a request to Head Office to transfer these positions

Fee-based accounts

Do not forget to do your setup in PureFees/Univeris for nominee RRIF/LIF accounts. Forward your Nominee Fee-Based Agreement to Imaging and forward your systematic withdrawal instructions (AWD) to Head Office to schedule the minimum for the year 2023.

Reminders and Good Business Practices

If the nominee RRIF or LIF contains only GICs

In order to avoid a GIC being sold to pay the RRIF or LIF minimum, as outlined in our procedures, we encourage you to add other assets (e.g., iA Clarington money market funds, HISA funds, etc.). This will ensure that other assets are available within the account to satisfy the minimum ensuring that penalties associated with redeeming the GIC are not incurred.

Transfer from nominee LIRA/LRSP to nominee LIF

Ensure that the legislation is the same between the nominee LIRA and the LIF.

Ensure the banking information is on file

To facilitate scheduled payments to the client, please ensure current banking information is on file.

Temporary income

If the LIF legislation allows for a temporary income and your client wishes to take advantage of this provision, please remember to forward the appropriate annexes to Head Office as they are required each year.

Incorrect address

If your client’s address is incorrect, please take the opportunity to update the address and do not forget to uncheck the “Incorrect Address” box in Univeris. Also please verify that the residency code is also updated if necessary.

AWD setup for 2023 in a new nominee RRIF/LIF

If your client wishes to receive systematic payments within 2023, please remember to forward a 2023 systematic payment instruction form to Head Office for processing.

In order to assist you with preparing for year end, a list of impacted clients is available in Univeris under Reports / Administration / Registered Plans / RRSP Age Limit (in the “Designation” drop-down menu of the selection criteria, you will have to select “Dealer / Nominee”).

For more details, we invite you to refer to Administrative Procedure # 51 available on the Advisor Centre under Procedures and Forms / Administrative Procedures.

Should you require any information, please do not hesitate to contact our Client Service Department, by email at investia@investia.ca or by phone at 1-888-684-5548.

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