What if I have a pension plan?
A LIRA, LIF and LRIF are similar to a RRIF. Pension benefits cannot simply be withdrawn from your employer's plan upon termination of employment. They may be transferred to a locked-in retirement account (LIRA) that is an RRSP subject to federal or provincial pension legislation. Locked-in RRSPs are subject to the same withdrawal restrictions as were the funds in the original pension plan. By the year you reach age 69, your locked-in funds must be transferred to a life income fund (LIF), a locked-in retirement income fund (LRIF), or a life annuity. LIFs and LRIFs are RRIFs with restrictions on the maximum yearly payout. A LIF requires an annuity purchase not later than at age 80, while there is no such requirement for the LRIF. Terms vary somewhat from province to province.