Locked-In Retirement Account (LIRA)

Description
Locked-In Retirement Accounts (LIRAs) are established as a savings vehicle for retirement. LIRAs are locked-in RRSPs that are transfers of savings from an employer-sponsored pension plan.

Objective
To maintain tax-deferred savings of lump sum transfers from an employer-sponsored pension plan.

Suitability
Customers choosing to receive and control the lump sum, commuted value of their pension rather than a monthly pension amount.

Features

• Tax-Deferred: Income earned in the plan accumulates tax-deferred as long as it remains in the plan.
• Withdrawals: Generally, no withdrawals are permitted from a LIRA. Exceptions are made based on various provincial rules. It must be converted to a LIF, LRIF or annuity to withdraw from the plan.
• Regulations: LIRAs are governed by different provincial legislations.

For more information, please contact your Edward Jones financial advisor*.