Overview
A Locked-in Retirement Account (LIRA) is an account designed to hold a former pension plan member’s funds from a locked-in pension. Typically, people who aren't yet retired will open a LIRA after leaving a job with a pension.
At retirement, you can use LIRAs to purchase retirement income (through LIFs, which are similar to RRIFs) or convert it to an annuity. Like an RRSP, a LIRA must be closed by December 31 of the year that you turn 71.
Eligibility
You can open a LIRA if you have an existing LIRA or locked-in portion of a pension you'd like to move to Wealthsimple.
How to open a LIRA
Before you open a LIRA, please check the jurisdiction of your LIRA or pension. The jurisdiction of a new LIRA must match the jurisdiction of the LIRA or pension which the funds are coming from. You can usually confirm the jurisdiction on your account statement, pension package, or with your plan administrator.
To open a LIRA with Wealthsimple, follow these steps:
- Log in to the Wealthsimple mobile app
- Under Accounts, scroll down and select Add or move account
- Select Open a new account
- Tap LIRA from the account options
- Choose what you would like to invest in
- Tap Open account
- Follow the prompts to open your LIRA
- Log in to your Wealthsimple account
- Select + Add an account from the Home page
- Select the Investing tab
- Choose LIRA from the options
- Choose what you'd like to invest in
- Select Next
- Follow the prompts to open a LIRA
What you can invest in with a LIRA
You can invest a LIRA in a variety of Wealthsimple products:
- Self-directed investing:
- Managed investing:
Funding a LIRA
Since funds are locked in, you can't deposit funds into or withdraw from a LIRA. You can only fund a LIRA by transferring in an existing LIRA/locked-in portion of a pension or moving funds between LIRA accounts.
Frequently asked questions
Can I withdraw from my LIRA?
Early withdrawals from a LIRA account may be permitted if the account holder experiences financial hardship (such as having a low income, medical emergency, and so on) or non-financial hardship (such as becoming a non-resident, a shortened life expectancy, and so on).
The jurisdiction of your LIRA determines the criteria for early withdrawals through unlocking. Please contact our support team if you have any questions.
Can I change the jurisdiction of my LIRA?
No. You must open a new LIRA and select the correct jurisdiction.
How many LIRAs can I open?
- You can open as many Wealthsimple Portfolio LIRAs as you like.
- You can open up to 8 self-directed LIRAs.
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