How To Re-Activate An Inactive NHIF Account In

If you own a retirement savings plan (RRSP, RESP, etc.) and haven’t used it in a while, your account may have fallen into inactive status. This means that the plan administrator has notified the tax authorities that they should not expect to receive any further contributions to the plan.
Inactive status is common for retirement savings plans when people don’t make contributions for several years. If you’re not expecting to contribute any more money in the future then it makes sense not to spend your time managing paperwork and withdrawing funds from the plan each year. These are just some of the reasons why an inactive retirement savings account may fall into this status in the first place:

You Haven’t Contributed In A While

In the case of retirement savings plans, inactive status is a sign that it’s time to act. If you haven’t contributed in a while, first check whether your plan administrator hasn’t already notified the Tax Authorities under the Income Tax Act. This can help you avoid unnecessary penalties and fees. If there are no notification letters then contact your plan administrator to find out about your account status. They may be able to transfer money from your other RRSP or RESP accounts into your inactive account.
If you’re contributing under an RRSP or RESP, you may want to consider completing a transfer into this account if it has fallen into inactive status. But, first make sure you have enough contribution room in your other RRSPs or RESPs for the transfer before doing so. Additionally, be aware that some plans require at least one year of contributions before they can be transferred over. In these cases, it would be best to wait until there’s more time available and then do another transfer before the year is up.

You’re Not Eligible For Contributions Anymore

If you’ve reached the age where you’re not eligible for contributions anymore, then your account may fall into inactive status. Your plan administrator will notify the tax authorities that they should not expect to receive any further contributions.

The Plan Has Been Incorporated

If your retirement savings plan has been incorporated, it will be harder for you to withdraw any money from the plan. This means that you’ll have to talk with the administrator about setting up a withdrawal option. The administrator can help you set up a withdrawal option if they are comfortable with doing so.

The Plan Has Experienced Significant Changes
If your retirement savings plan has experienced significant changes like a change of name, an addition of new accounts, or additional features then the administrator may also choose to suspend contributions. If this is the case, they will inform the tax authorities accordingly and won’t accept any further contributions until there’s been a change in status.

There Are Other Issues With The Account

“If you’re looking to re-activate an inactive NHIF account, follow these steps:

• Call NHIF at 1-800-721-5556 to get your session ID number.

• Go to the website and create a new profile for the inactive plan.

• Make sure you’ve entered all the necessary information about yourself (you’ll need your NHIF ID number).
• Once you’ve created your new profile, go back through the new plan’s specific steps for adding a beneficiary and get it done.”

Are There Ways To Re-Activate An Inactive NHIF Account?

Although your account may be inactive, there are still some benefits to having it. You can still contribute to the plan or withdraw money from it without penalty if you choose. You also won’t be charged any fees for having an inactive account.
Some tips for re-activating an inactive NHIF account are:
1) Get in touch with the RRSP administrator of the retirement savings plan and let them know that you’re interested in reactivating your account.
2) If you used your retirement plan as a source of income (e.g., if you withdrew money), then get in touch with the CRA about amending your tax return for the year(s) when those contributions were made.
3) Check your record-keeping information to see if anything was missed by looking at old bank statements, etc.

What Happens When An NHIF Retirement Savings Plan Re-Activates?

When re-activating an inactive retirement savings plan account, you’ll need to provide information about your current contributions and withdrawals from the account in order for the plan administrator to prepare your returns correctly. In addition, there may be fees charged by the Canadian Revenue Agency (CRA) for each year that your retirement savings plans were inactive. If you have questions about how these funds will be managed when re-activating an account, please contact CRA directly at 1-800-959-8281 or visit their website at

How To Reactivate An Inactive NHIF Account

Final Words – Is Reactivation Worth It?

There are a few ways you can reactivate an inactive retirement savings account. The first is to wait 6 years before reopening the account and withdrawing any money. You’ll have to pay close attention to the annual contribution limits but this method will allow you to keep your contributions in the plan until they mature.
Another option is to make a one-time withdrawal of your contributions which will work out as long as it still falls within your RRSP’s annual contribution limits. This option will only be available for 3 years after the last contribution was made so that it doesn’t affect future contributions.
If you are looking for more frequent withdrawals, you may want to consider converting your plan into an RRIF instead which allows for more flexible withdrawals. This will also allow you to take advantage of other features offered by an RRIF like tax-free growth and more flexible income splitting options.
The bottom line is that if you know how many years it has been since your last contribution then this question should not even arise but, if not, then choosing whether or not reactivating your account is worth it depends on what type of plan you have and what kind of activities you would like to invest in when reactivating the account.

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