Locked-In Retirement Account

The Locked-In Retirement Account (LIRA) ¹ and Locked-In Retirement Savings Plan (LRSP) ¹ enable you, as an employee to maintain the tax-deferred status of pension plan proceeds received when you leave a company. LIRA’s lock in your money, but not your investment options. These plans are governed by federal or provincial pension legislation.

How they Work

Administrative information:

The LIRA can receive pension proceeds if the planholder earned the pension while working in a province other than B.C., Nova Scotia, or P.E.I.
P.E.I. has not yet established its own pension legislation, therefore any locked-in plans from P.E.I. must be handled individually
All money in locked-in plans must come from your Registered Pension Plan (RPP) or from another locked-in plan. You can’t make additional contributions, but you can decide how your money is invested.

Special information:

The LIRA or LRSP must be collapsed in the year in which you have your 71st birthday. You can then:

Purchase an *annuity, or
Transfer the assets to a LIF or LRIF, depending on the pension legislation governing the LIRA or LRSP

Annuities are an insurance product which are only purchased through Cornerstone Financial Management Inc. To learn more, please see the full disclaimer at the bottom of the page.

¹Investopedia

BUILDING WEALTH

Read our Expert Guide on

Building Wealth

Top 3 Strategies That Force You to Build Wealth

RETIREMENT RECOVERY

Read the

Retirement Recovery Program

Top 5 Strategies to Squeeze Out More Retirement Income

Locked-In Retirement Accounts (LIRAs) are provided through Aligned Capital Partners Inc.

* First Name:
* Last Name:
* Email Address: