|
| |||||||||||||
Financial Planning -> Pensions -> Registered Pension Plans (RPPs) - Locked-in retirement accounts (LIRAs)Locked-in retirement accounts (LIRAs) - also known as locked-in RRSPsWhen 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:
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 annuityIn 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 changes regarding federally-regulated pension plans.
Revised: February 27, 2011
|
|||||||||||||
