LIRA, LRSP, LIF and LRIF

Use this form to review and edit the properties of a locked-in retirement account or income fund. The fields shown will change automatically when you change the account type.

A Locked-In Retirement Account (LIRA) is commonly created when funds are transferred from an employer pension plan after the employee leaves the plan. A Locked-In Retirement Savings Plan (LRSP) is the corresponding name generally used for a federally regulated pension plan.

These funds are locked in for retirement. Contributions normally cannot be made to the account, and withdrawals are restricted until the funds are converted to an income fund or otherwise unlocked according to the applicable pension legislation.

If the account is currently a LIRA or LRSP, enter it as a LIRA and specify the age at which it should be converted to a LIF. You do not need to create a separate future LIF account. The TIME MACHINE will convert the account at the specified age and retain its investments.

A Life Income Fund (LIF) or Locked-In Retirement Income Fund (LRIF) is used to provide retirement income from locked-in pension funds.

These accounts generally have a required minimum annual withdrawal. Unlike a RRIF, they may also have a maximum permitted withdrawal. The limits depend on the applicable pension jurisdiction, the owner’s age, the account balance and, in some jurisdictions, investment returns or prescribed interest rates.

The TIME MACHINE will make the required minimum withdrawal. Additional withdrawals may be made according to your planned withdrawals and withdrawal PRIORITIES, but they will not exceed the maximum calculated by the app.

The applicable rules can be complicated and vary by jurisdiction. Always confirm the permitted withdrawals with the financial institution or pension administrator holding the account.

If the account has already been converted, change its current type from LIRA to LIF. The fields needed for the LIF calculations will then appear on this form.

Only supported changes are available in the account-type menu. When you select another type, the relevant fields will appear. Information that no longer applies will be cleared when the account is saved.

A LIRA or LIF cannot be jointly owned. If you have a spouse, you can correct or change the owner to record an input error or an inherited account.

After changing the account type or owner, review your AUTOMATIC SAVINGS/WITHDRAWALS and your deposit and withdrawal PRIORITIES. Entries associated with the account may need to be revised.

Select the province whose pension legislation governs the account. This is not necessarily the province where you currently live.

Select Federal and territories for an LRSP or another account governed by federal pension legislation. The TIME MACHINE uses the selected jurisdiction to calculate the conversion and withdrawal limits that apply.

For a LIRA, enter the age at which the account should be converted to a LIF. The permitted conversion age depends on the pension jurisdiction, and the form will validate the age according to the selected jurisdiction. The account must generally be converted no later than age 71.

The TIME MACHINE also permits withdrawals from a LIRA after age 65, as though the necessary partial conversion had been arranged with the financial institution. Such withdrawals remain subject to the maximum amount calculated under the applicable LIF rules.

If the account owner has a younger spouse, you may be able to use the spouse’s age when minimum withdrawals are calculated. Selecting this option generally produces smaller required withdrawals.

Make sure this selection agrees with the instructions given to the financial institution or pension administrator holding the account.

For a current LIF, enter its balance at the end of the previous calendar year. The TIME MACHINE uses this amount to calculate the minimum and maximum withdrawals for the current year.

Update this value every January. If the account was converted to a LIF during the current year, enter 0.

This is not the account’s current balance. The current balance is calculated from the investments held in the account and must be updated by editing those investments.

Enter the total amount already withdrawn from the LIF during the current calendar year. Set this value to 0 at the beginning of each year and update it whenever another withdrawal is made.

Entering a withdrawal here does not change the current balance of the account. You must also update the account’s investments to reflect the actual withdrawal. This field tells the TIME MACHINE how much has already been withdrawn when it calculates the remaining minimum and maximum amounts.

This field is shown only when the growth rate of the account’s Cash investment has not yet been entered. This commonly occurs with newly imported Wealthica accounts.

To change an existing Cash growth rate or the value and growth assumptions of other investments, select Edit investments.

You can select the owner’s spouse, Estate or eligible dependents as beneficiary. If the spouse is the beneficiary when the owner dies in the TIME MACHINE, the account will transfer to the spouse and continue under the applicable registered-account rules.

When the account is saved, all applicable LIRA or LIF information is saved together on this page. You will then continue to the account’s investments.