LIRA'a - Locked In RSPs. How can I get them out?

[blueline]

A portion of my RSP investments are Locked-In and I am wondering if it is possible to get at them (and how)?

I am in my early 40's, so I have several years before retirement. However, I may need some extra income and was hoping to be able to get at the LIRA's. Does anyone know if this is possible at this time and how to go about it? If not, at what age would this be possible?

Thanks!!!

 

[lickrolaine]

can you say big penalties,if they are in your own RRSP.If it is a pension plan,not sure,but it is not possible to get at that money.There may be some deals made,like if GM or Ford,Chryler,Ibm,etc,close a plant the gov may relax the rules to accommodate that particular work force.People get confused with the "locked in status" of their pension plan.It actually means you now have ownership of it,albeit you have to follow the rules in order to collect.Most have a garranteed 10 years of payments,depending on when you die.

55 seems to be the magic number,where as you can start to withdraw funds from an RRSP,each pension plan has different rules so you have to check in with the plan admin for that one.

 

[Fortunato]

A portion of my RSP investments are Locked-In and I am wondering if it is possible to get at them (and how)?

I am in my early 40's, so I have several years before retirement. However, I may need some extra income and was hoping to be able to get at the LIRA's. Does anyone know if this is possible at this time and how to go about it? If not, at what age would this be possible?

Thanks!!!

LIRA are legislated provincially... hence, it's easier to access in some provinces than in others. For Ontario, this might help:

http://www.fsco.gov.on.ca/English/pubs/consumerbrochures/applying_for_special_access-EN.pdf


Best regards,

F.

 

[Fortunato]

"Locked in" refers to contributions made on and after 1/1/87. This is governed by the Pension Benefits Act of Ontario(assuming you are in Ontario)

Locked in means exactly what it says, you can never cash it out, you can only use it to buy a LIRA or Annuity for pension purposes on and after age 55.

While I generally agree with your correction, there are indeed circumstances in which you can access "locked in" funds.... see my previous link for the rules in Ontario.

Best regards,

F.