Locked-in Retirement Account

Locked-in Retirement Account (LIRA), Locked-in Retirement Savings Plan (LRSP), and Restricted Locked-in Savings Plan (RLSP) are locked-in versions of a Registered Retirement Savings Plan (RRSP) to which no contributions can be made.

The only difference is that a locked-in retirement account (LIRA) is regulated using provincial legislation, while a locked-in retirement savings account (LRSP) and restricted locked-in savings plan (RLSP) are subject to federal legislation.

A locked-in retirement account (LIRA) lets you transfer funds from your former employer’s pension plan (RPP) to an individual plan so you can have control over your investments.

If you leave or lose your job, a LIRA allows you to transfer the funds accumulated under a retirement savings plan or your ex-employer’s pension plan to an individual plan. With our help and advice, you can appropriately invest your savings, and enjoy greater control over your investments.

In general, money transferred from a registered pension plan into a locked-in account, such as a locked-in retirement account (LIRA), life income fund (LIF) or locked-in retirement income fund (LRIF), can only be used to provide income after retirement.

Characteristics and advantages of a LIRA:

  • Your savings grow tax-free

  • You may not contribute nor withdraw money invested in a LIRA except under certain conditions

  • Click here for conditions from the Financial Services Commission of Ontario website

  • Upon retirement or, at the latest, the year you turn 71 years of age, you must convert your LIRA to a LIF

  • Once you transfer money into a LIRA, you are eligible transfer up to 50% to a LIF.

    *Note, you must be 55 years or older, and this transfer must be made within 60 days of deposit in LIRA

  • LIRAs and locked-in RRIFs are taxed in the same manner as regular RRSPs
  • Contact our office for more information about Locked-in Retirement Accounts.