Locked-in RSPs, LIRAs and their Maturity Options

A Locked-in Retirement Savings Plan (RSP), also known as a Locked-in Retirement Account (LIRA) in some provinces, is created when the commuted (lump sum) value of an employer and employee’s vested contributions plus interest are transferred from a Registered Pension Plan (RPP) to an RSP.

The Locked-in RSP and the LIRA have virtually identical attributes and no contributions can be made to these accounts.

Maturity Options for Locked-in RSPs and LIRAs

Locked-in RSPs and LIRAs have different maturity options than regular RSPs and can vary based on your province of residence. The options to receive income out of a Locked-in RSP/LIRA include:

• Purchase a life annuity prior to or in the year you reach age 71
• Transfer the funds to a Life Income Fund (LIF) prior to or in the year you reach age 71
• In Alberta, Manitoba, Ontario, Newfoundland and Labrador, transfer the funds to a Locked-In Retirement Income Fund (LRIF) prior to or in the year you reach age 71
• In Saskatchewan, transfer the funds to a Prescribed Retirement Income Fund (PRIF) prior to or in the year you reach age 71