How to Unlock Your Federal Locked in Retirement Accounts

Locked-in Retirement Accounts (LIRAs) are retirement accounts available in Canada. LIRAs are used for terminated employees to transfer the funds from their other pension plans to be held until they turn 71 years old. At that time, the employee can transfer the funds to a life annuity, Life Income Fund (LIF) or Locked-in Retirement Income Fund (LRIF) account. The funds in Locked-in Retirement Accounts are locked and aren't available to the recipient. However, there is a way to unlock the LIRA funds.

Instructions

1. Determine if you are eligible to get your LIRA unlocked. Special circumstances for unlocking Locked-in Retirement Accounts are a small account balance, no longer being a Canadian citizen, life expectancy shortening, financial hardships and enforcement orders for spousal and child maintenance.

2. Contact the regulator for the LIRA account and notify them of your intent to unlock the account. They will provide the paperwork for you to fill out and sign to start the process.

3. Provide the LIRA regulator with the documents that will prove your eligibility to unlock your Locked-in Retirement Account. The regulator will go over your paperwork and documents and notify you if your request will be granted.

References

• Canadian Tax Tips: Unlocking Your Locked-in Pension Accounts
• Canadian Tax Tips: Locked-in Retirement Accounts (LIRA)