Pension Plans

• R.R.S.P.
• R.R.I.F.
• T.F.S.A.
• R.E.S.P.
• G.I.C.
• Segregated Funds
• Annuities
• L.I.R.A. & L.I.F.

The Locked-In Retirement Account

Locked-In Retirement Savings Plan (LRSP) enable you, as an employee to maintain the tax-deferred status of pension plan proceeds received when you leave a company. LIRA's lock in your money, but not your investment options. These plans are governed by federal or provincial pension legislation.

Administrative information:

• The LIRA can receive pension proceeds if the planholder earned the pension while working in a province other than B.C., Nova Scotia, or P.E.I.
• For pensions earned in B.C. or Nova Scotia, or while working in an industry governed by federal pension legislation, Trimark offers the LRSP
• P.E.I. has not yet established its own pension legislation, therefore any locked-in plans from P.E.I. must be handled individually
• All money in locked-in plans must come from your Registered Pension Plan (RPP) or from another locked-in plan. You can’t make additional contributions, but you can decide how your money is invested.

Special information:

The LIRA or LRSP must be collapsed in the year in which you have your 71^th birthday. You can then:

• Purchase an annuity
• Transfer the assets to a LIF or LRIF, depending on the pension legislation governing the LIRA or LRSP

Contact Achieve Financial for more info about Locked-In Retirement Plan.

A Life Income Fund (LIF)

Is a retirement income plan using locked-in pension money and the owner of the LIF can control the investments held within the fund. In addition to the requirement for a minimum annual withdrawal (like a RRIF), LIFs also set a maximum withdrawal amount.

Your annual withdrawal must be within these minimum and maximum amounts as specified by legislation. In most provinces, when the LIF holder reaches age 80, the LIF must be converted into a life annuity.

The easiest way to think of a LIF is that it's a RRIF for your locked-in pension money, with a few more restrictions designed to ensure that you have income available for your lifetime.

LIFs vary slightly from province to province, and are not available in P.E.I. and the Northwest Territories. Most provinces require you to have reached age 55 before you establish a LIF, but there is no age restriction in New Brunswick, Quebec, and Alberta.

Contact Achieve Financial for more info about setting up your Life Income Fund.