Can cpp disability stop benefits for moving retirement funds?


#1

Small Lira , Followed Ontario rules for unlocking. The bank moved an existing Lira temporarily to a LIF to then moved it to an rrsp. The funds sitting in the temporary LIF issued a t4rif. No money was withdrawn and the LIF was closed within a few weeks when the money was moved to the rrsp. No monies have been withdrawn from the rrsp either as evidenced from the bank paperwork and income tax return. Can cppd stop paying benefits because that t4rif was generated from the bank process? Simply moved the money from one retirement fund to another no money withdrawn as income. Any opinion appreciated.


#2

I don’t see how this would be an issue. You are allowed to earn that $5400 from working. The key word is from “working”. So you can withdraw RRSP …collect EI sick leave benefit and they wont penalize you. Not 100% sure of this, but 99.9%


#3

Thanks for your thoughts. That is my understanding as well. The amount that was transferred was over the 5400. However it was a transfer only no monies were withdrawn. I think the confusion came from the temporary account it was held in generated a t4rif form until the bank completed the transfer.


#4

I just spoke to a friend and she withdrew 10K in RRSP’s a few years ago and no affect on her CPP-D payments


#5

Thanks that is good to know.


#6

There is just confusion going on here at Service Canada and someone there mistook this for evidence that you were working and earning an income. CPP-D is paid based on whether you have the capacity to perform gainful employment. Withdrawing RRSP funds or transferring money around does not = evidence of gainful employment. They should clear this up once you explain.


#7

Thankyou that is what we initially understood as well. I appreciate you taking the time to clarify this matter.