Converting Your RRSP

Locked-In Retirement Accounts (LIRAs) - Quebec

A registered retirement savings plan administered by the Régie des rentes du Québec (RRQ) for workers who contributed to the supplemental retirement plan (widely known as a "pension fund") set up by their employer.

You can take the money from your pension fund and put it into a LIRA when:

• you leave your job;
• you take early retirement (before age 55);
• the pension plan is abolished.

Withdrawals

You may withdraw money from your LIRA when:

• a doctor certifies that your life expectancy is reduced; you may make a full or partial withdrawal;
  
• you haven't lived in Canada for at least two years; the balance must be withdrawn all at once;
  
• you are over age 65 and the balance of your retirement funds (other than RRSPs and RRIFs) do not exceed 40% of the QPP maximum pensionable earnings; the balance may be withdrawn all at once.
  

In all three cases, you may also put the money into your RRSP.

Conversion

You can convert your LIRA into a Quebec life annuity or Life Income Fund (LIF) any time before December 31 of the year in which you turn 71.

When you die, you have to leave the LIRA to your surviving spouse, who can then transfer it into an RRSP in his or her name. If there is no surviving spouse or if he or she waives rights to the LIRA, it is then transferred to the estate.

Locked-In Retirement Accounts (LIRAs) - Ontario

A locked-in retirement plan administered by the Financial Services Commission of Ontario.

You may withdraw money from your LIRA when:

• a doctor certifies that you have a life expectancy under two years: you may make a full or partial withdrawal;
  
• you are having financial difficulties; you may withdraw the amount authorized by the Commission;
  
• you are over age 55 and the balance of your retirement funds (other than RRSPs and RRIFs) do not exceed 40% of the CPP maximum pensionable earnings; the balance may be withdrawn all at once.

In all three cases, you may also put the authorized withdrawal amount into your RRSP.

Conversion

Generally not before age 55, but before December 31 of the year in which you turn 71, you may convert your LIRA into an:

Ontario life annuity or LIF;
LRIF (Locked-in Retirement Income Fund).
When you die, you have to leave your LIRA to your surviving spouse, who can then transfer it into an RRSP in his or her name. If there is no surviving spouse or if he or she waives rights to the LIRA, it is then transferred to the estate.

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When and how to convert your Previous LIRA or Locked-in RRSP

Next Registered Retirement Income Funds (RRIFs)