Locked-in retirement accounts (LIRAs) - also known as locked-in RRSPs
When an employee has terminated employment and was a member of a registered pension plan, any
funds due to the employee under that plan may be transferred
to a LIRA. A LIRA is the same as an RRSP, except that
the funds are locked-in. Withdrawals may not be made from a LIRA.
By the end of the year in which the taxpayer
turns 71, a LIRA must be transferred
to one of the following:
allows control over investments in the
account, and is subject to minimum and maximum
annual withdrawals
Federal or provincial pension legislation defines the
minimum age at which a LIRA can be transferred to a life
annuity, LIF or LRIF.
Mandatory conversion to life
annuity
In some provinces, the LIF or LRIF must be converted to a
life annuity at a certain age (usually 80). For LIFs
and LRIFs under federal jurisdiction, this is no
longer required.
See the article Unlocking your locked-in
pension accounts, which includes information on the 2008 Federal
Budget proposed changes regarding federally-regulated pension plans.
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substitute for professional advice. Each person's situation differs, and
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