Locked-In Retirement Account (LIRA)

also called a locked-in RRSP

Vested benefits from a Private Pension plan can’t be received in cash until retirement. So if you leave an employee your before retirement, your vested benefits must go to a Locked-In Retirement Account (LIRA).

You get the same investment choices as regular RRSPs (managed or self-directed). Generally the same restrictions on withdrawals apply as with the original Private Pension plan.

You can (subject to the same age restrictions of an RRSP)

  • investment account which holds funds transferred from locked-in Defined Benefit or Defined Contribution pension plans, usually upon retirement, resignation or termination
  • like RRSP but can’t make withdrawals or transfer to RRIF (since not locked in)
  • must usually be at least age 55 to get an early retirement benefit
  • money can go to LIF, LRIF or annuity

  • a form of loft in RRSP

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