Withdrawals from a LIRA

Unlike an RRSP where you can withdraw funds at any time, investments held inside a locked-in account cannot be withdrawn until a specified age outlined in the applicable pension legislation is reached (though certain exceptions exist). After attaining the specified age, the LIRA account can be matured to a Life Income Fund (LIF). After maturity, a minimum as well as a maximum withdrawal can be made. The plan is always governed by pension legislation and is meant to provide an income until age 90. The maximum withdrawal limits (which increase with age) prevents an account holder from withdrawing the account in full. Any monetary gains earned inside the LIRA are also considered to be locked-in. All growth inside the plan is tax deferred.