Locked-In Retirement Account (LIRA) & Locked-In Retirement Savings Plan (LRSP)

Locked-In Retirement Account (LIRA) or Locked-In Retirement Savings Plan (LRSP)

LIRAs/LRSPs are a transfer of a company pension, and are therefore governed under pension legislation.

You cannot withdraw any funds from a LIRA/LRSP until you are 55. At that time you may transfer the LIRA/LRSP to a Life Income Fund (LIF).

There is a minimum and a maximum range for withdrawals determined by the regulations and designed to provide an income for life. The income you will receive will vary from year to year.

There are special cases in which you may be able to get the money out early but they are severe cases.

LIRAs/LRSPs/LIFs, like RSPs, have the ability to name beneficiaries.   Also like an RSP, on death of the annuitant the value of the LIRA will be brought into income of the annuitant then paid out to beneficiaries unless the beneficiary is the surviving spouse who can transfer it to their own RSP with no tax consequences.

There are circumstances where unlocking your LIRA may be possible and transferring some or all of it to your RSP may be advisable.

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