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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
Take the next step…talk to an advisor.
For details on Locked-in RSPs/LIRAs, LIFs, LRIFs and PRIFs, please
contact an advisor. Or,
ask an advisor to contact you.
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