General information only — not financial advice for your situation.
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Plain English
An account that holds money transferred from an employer pension plan. Unlike a regular RRSP, you can't just take out a lump sum — withdrawals are restricted.
Technical definition
A Locked-In Retirement Account (LIRA) holds funds transferred from an employer's registered pension plan. It restricts bulk withdrawals to preserve the pension benefit for retirement. Provincial pension legislation governs LIRAs, and funds must eventually be transferred to a Life Income Fund (LIF) or used to purchase an annuity to begin receiving income.
Examples
- • You leave your job and transfer $80,000 from your employer's defined-benefit pension to a LIRA. You cannot withdraw it as a lump sum.
- • At retirement, you convert the LIRA to a LIF, which has both minimum and maximum annual withdrawal limits.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.