Post # 1
Omg, Bees! I got some mind blowing news today and I have to share. I am busting to tell FI but he is alseep until 4: 30 this afternoon (he is on night shift).
I got an email today from the Federal Pension Office. I used to work for the Public Service for over 9 years, but quit that job and started in the private sector just over a year ago. In January FI and I did the paperwork to have both of our pension monies transfered to the same bank and it has taken this long for the Feds to get their act together and finalize things.
At the time we did the paperwork, everyone, including our banker, told us that all monies I had paid into my pension over the last 9 years were locked in and could not be accessed until retirement, which was totally fine with us.
Turns out that’s not true…and it’s more than anyone thought. I was told this morning that next week they will be transfering $99,000 to our locked in retirement account, but that there is an additonal $108,000 that must be paid out to me or transfered to an RRSP of my choosing (which does not have to be locked in).
Holy shit! In an instant my entire world has changed. Not only is the wedding and honeymoon now paid for, our debts eliminated (we had less than $10,000 between us to begin with), but our down payment on the home we plan to buy in two years is taken care of.
I think I am in shock…it has not really sunk in yet. FI will lose his mind when I tell him later today!!
Post # 3
Holy crap that is amazing!! Isn’t it amazing that things sometimes just work out in the most perfect way?
Post # 4
Congratulations! I pray that something like this (or even just a couple grand, lol) will happen to us. So envious of (but happy for!!!) you 🙂
Post # 5
- Wedding: August 2013 - Rocky Mountains USA
@sillysillybee: lucky girl!!! That’s awesome!
Post # 6
That is awesome 🙂 You obviously had some good karma coming your way!
Post # 7
@sillysillybee: WOW! Congrats! That REALLY is amazing!
Post # 8
Wow, that’s awesome! However, if you were here in the US and under the age of 59 1/5, over half of that would be decimated by taxes. I hope that’s not the case in Canada.
Congrats on your windfall!
Post # 9
Holy crap, that is AWESOME!!!!
Post # 10
Congrats! That’s awesome!
Post # 11
@sillysillybee: Congratulations! That is amazing news! 🙂
Post # 12
@Sunfire: If I have it straight paid out to me they will take $40,000 right off the top. If I put it in a personal RRSP (that I can still access now) then I am safe.
Post # 13
@sillysillybee: Thats AMAZING!!!! I’m so excited for you!!! Make sure you put some away because you’ll have to pay income tax on it in the spring. It would be a good idea to check with someone about what % of income tax you’ll have to pay… you’ll likely be bumped up to the highest income bracket… Could be almost 40%, but I’d check on that before you make too many plans. However… after taxes you still have WAY more money than you did this morning and thats a miracle!
ETA – just saw your update – JACKPOT!!!!!!!!!!!!!!!!!
Post # 14
@sillysillybee: That’s great! If we take any early retirement here (US) not only do we get penalized federal and state, but also get another federal tax hit at tax time. Canada rocks! 😉
Post # 15
TO @sillysillybee: you said…
If I have it straight paid out to me they will take $40,000 right off the top. If I put it in a personal RRSP (that I can still access now) then I am safe.
True enough… BUT if you take any of the money out of the RRSP to spend you will be taxed to the hilt !! (Higher than the standard tax rate… because YOU NEVER paid tax on that money up front via your Annual Tax Return… and actually got a “benefit” from the Govt because you chose to deposit it for your Retirement).
The one exception as I understand it is if you have never been a homeowner before and use the funds towards the purchase of a house, BUT then you have to replace whatever amount that is within a set period of time.
MY BEST ADVICE…
Find yourself a Canadian Tax Accountant NOW and let them explain to you all the Tax Obligations BEFORE you take any concrete steps on what happens to this money (such as putting it into an RRSP)
Because once you make a choice, and the money is transferred, you are responsible for the taxes if you need to then change your mind to move it / access it.
Hope this helps,
Post # 16
@sillysillybee: What a blessing! God is good! Congratulations!