Investing

Question about LIRA

  • Last Updated:
  • Feb 19th, 2018 2:46 pm
[OP]
Member
Jan 14, 2012
391 posts
102 upvotes
Oshawa

Question about LIRA

Is LIRA just a phrase for describing multiple types of locked in retirement options? I need to open a LIRA account with TD. Is a LIRA a specific type of account? Do any of the five banks have a self-directed LIRA account?

thanks for any help
4 replies
Deal Addict
May 17, 2012
2595 posts
1430 upvotes
ontario
A LIRA is just a locked in RRSP

Yes, all the big 5 (and likely all discount brokerages) have self-directed LIRA accnts.
Deal Fanatic
Mar 24, 2008
6053 posts
2305 upvotes
Toronto
Supperfly wrote: Is LIRA just a phrase for describing multiple types of locked in retirement options? I need to open a LIRA account with TD. Is a LIRA a specific type of account? Do any of the five banks have a self-directed LIRA account?

thanks for any help
You can open a LIRA with any one of the banks, including TD. Typically, the funds that go into a LIRA come from your (ex) Employer. I don't see a reason for you to open a LIRA otherwise since you can't take that money out easily.
Illegitimi non carborundum
[OP]
Member
Jan 14, 2012
391 posts
102 upvotes
Oshawa
ksgill wrote: You can open a LIRA with any one of the banks, including TD. Typically, the funds that go into a LIRA come from your (ex) Employer. I don't see a reason for you to open a LIRA otherwise since you can't take that money out easily.
Yes they are coming from my ex job. My question was is the account called LIRA itself ---or I get to choose different funds within it like LIF, LRIF, RLIF and PRIF?
Deal Addict
User avatar
Feb 1, 2012
1598 posts
2372 upvotes
Thunder Bay, ON
This link has a good discussion of Locked-in Retirement Accounts:
http://www.avrexmoney.com/retirement/lo ... -road-map/

LIRA is a special retirement account like an RRSP except it is only used for money that comes from a workplace pension. It can hold the same type of investments as a RRSP. Once you set up a LIRA you can only add funds from another pension of the same Federal or Provincial jurisdiction. (For example I have an Ontario LIRA and a Federal LIRA, each from a different pension at a different company.)

Funds cannot be removed from a LIRA until retirement age - typically 55 but may depend on the rules of the plan. And before withdrawing funds it must be converted to a LIF, LRIF, PRIF depending on the province. Those accounts are similar to a RRIF, except where a RRIF has minimum annual withdrawals, a LIF et. al. have minimum and maximum annual withdrawals. It's meant to provide lifetime income like a pension, so you can only withdraw and spend so much in a year.

Since your profile says you are from Kitchener, FSCO is a good reference for pensions in Ontario. But pension regulation is based on the registration of the employer, not the residence of the employee, so you should check with the pension plan administrator to be sure what jurisdiction is applicable.
http://www.fsco.gov.on.ca/en/pensions/P ... fault.aspx
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