A retirement savings plan that is established by the transfer of locked-in funds from a Registered Pension Plan (RPP) or another locked-in retirement savings/income plan such as a Locked-in Retirement Savings Plan (LRSP), Locked-in Retirement Account (LIRA), Life Income Fund (LIF) or Locked-in Retirement Income Fund (LRIF).
Similar to an RRSP, a LIRA consists of pension credits transferred from the employer upon departure of the employee. The funds invested in the LIRA are tax-sheltered until used to purchase an annuity or an LIF.
A locked-in retirement account (LIRA) is a special registered retirement savings plan (RRSP) into which the contract holder can transfer the amounts that are in their supplemental pension plan (SPP). The amounts held in this type of contract are "locked in" and cannot be withdrawn until they retire. They can be used only for retirement income. At maturity, a LIRA or a locked-in RRSP may be: converted into a life income fund (LIF) or a locked-in registered retirement income fund (RRIF); or used to purchase a life annuity (paid until death).
A Locked-in Retirement Account holds money transferred out of a pension plan. You might use one if you are changing companies and able to take your pension savings with you. It's like a locked-in RRSP. You cannot withdraw the funds until you retire. But, you must open your LIRA before the end of the calendar year you turn age 69 and you must make your first withdrawal before the end of the following year. Then you can transfer the funds either to an LIF, an LRIF or an annuity. Different parts of the country have different rules.
An account created from pension credits held with a former employer and transferred when the employee leaves the organization. These funds can be used to purchase a Life Income Fund (LIF), a Life Retirement Income Fund (LRIF) in Alberta, Saskatchewan and Manitoba only, or a life annuity.
This is the name given to a Locked-in RRSP in the provinces of Alberta, Manitoba, New Brunswick, Ontario, Quebec and Saskatchewan.
Formerly called a locked-in RRSP, this is a tax-deferred retirement savings arrangement for locked-in funds transferred out of a pension plan upon terminating from the Plan.
A Locked-In Retirement Account (LIRA), sometimes called a locked-in RRSP, contains accumulated pension benefits transferred out of a workplace pension plan. It is subject to the rules and regulations governed by the pension regulatory authorities at federal and provincial levels. If the funds in your LIRA come from a pension plan in Ontario, for example, it will be subject to Ontario's pension regulations. If your workplace pension plan fell under federal jurisdiction – as it would if your worked for a bank, communications or transportation company – your LIRA would be subject to federal pension regulations.