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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

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