# PRIF vs LRSP



## TomB19 (Sep 24, 2015)

I live in SK and I am trying to transfer a pension to a self directed account at TD. The last one I transferred went into an LRSP.

I had assumed this one would simply add to my LRSP account but they have only provided the options of LIRA and PRIF.

It appears PRIF may be the preferred alternative, as it appears to not have a maximum withdrawal. It might be ideal.

Can anyone provide some advice? Are there pitfalls to the PRIF?


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## heyjude (May 16, 2009)

I had a pension fund in Manitoba which I was obliged to transfer to a LIRA. At age 55, I was able to unlock 50% of it to a PRIF; the remaining 50% had to be transferrred to a LIF. I can withdraw from the PRIF as I prescribe, but of course the gummint withholds taxes (30% IIRC, but it all gets sorted at the end of the tax year). The LIF has minimum and maximum withdrawals and again, tax is withheld. You need to look up the regulations for SK. I am not surprised that you need to establish a new account. The benefit to me of unlocking 50% of my LIRA early was that I am doing it at a time of low income and smoothing taxes. I also felt that if I left it alone and waited till I could withdraw it slowly from a LRIF at age 71, I might never be able to benefit from much of it.


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## TomB19 (Sep 24, 2015)

Thank you, Jude. You have just made this sad song better.


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## Eclectic12 (Oct 20, 2010)

TomB19 said:


> I live in SK and I am trying to transfer a pension to a self directed account at TD. The last one I transferred went into an LRSP.
> I had assumed this one would simply add to my LRSP account but they have only provided the options of LIRA and PRIF.


I live in Ontario where the first pension from leaving a company went into a LIRA. After proving the second pension was under the same pension rules (i.e. both were under Ontario pension rules), the second pension was deposited to the same LIRA.

One of the first questions is what legislation the pension is under ... that may limit or expand what it can be transferred into.


Cheers


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## GreatLaker (Mar 23, 2014)

Eclectic12 said:


> I live in Ontario where the first pension from leaving a company went into a LIRA. After proving the second pension was under the same pension rules (i.e. both were under Ontario pension rules), the second pension was deposited to the same LIRA.
> 
> One of the first questions is what legislation the pension is under ... that may limit or expand what it can be transferred into.


True that.

I have 2 LIRAs; one Ontario and one federal, as per the jurisdiction of the respective pensions. When I commuted the 2nd pension I asked both the broker and the pension administrator if they could just deposit it into the first LIRA. Both said no. So when I hit age 71 I will have a RRIF and 2 LIFs to worry about managing mandatory withdrawals. :concern:


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## heyjude (May 16, 2009)

TomB19 said:


> Thank you, Jude. You have just made this sad song better.


&#55357;&#56834; LOL!


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