Locked-In Retirement Account
Transferring funds from a Registered Pension Plan? You need a League Savings and Mortgage Locked-in Retirement Account (LIRA). A LIRA is like a RSP but has specific pension restrictions based on the jurisdiction.
What exactly is a LIRA?
- A LIRA allows the holder to delay the purchase of a Retirement Income option deferring taxable income while their locked-in funds continue to grow.
- Unlike regular RSPs, you cannot make withdrawals from the LIRA. You may be eligible for a special withdrawal depending on age, balance and jurisdiction.
- Once you turn 71 you are required to convert your LIRA to a retirement income option.
- In the event of the death of the LIRA owner, the balance of their fund is available to their spouse, beneficiary, or estate.
Ask for information on transferring an existing LIRA from another institution. At League Savings and Mortgage, our qualified staff will be pleased to discuss any aspect of your retirement options and explain our Locked-in Retirement Account in more detail.