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
Locked-In Retirement Accounts (LIRAs) are provided through Aligned Capital Partners Inc.
Aligned Capital Partners Inc. (“ACPI*”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through McCosh Private Wealth, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/McCosh Private Wealth and covered by the CIPF. Non-securities related services are provided through McCosh Financial Consultants. McCosh Financial Consultants is an independent company separate and distinct from ACPI/McCosh Private Wealth.
