# LIRA Question



## Ahnutts (Nov 23, 2011)

A while back my wife changed jobs and we transferred the funds in her company pension into a LIRA at Scotia itrade. I'm wondering if future contributions to this account have the same tax benefits as an RRSP or would we be better off contributing to a separate RRSP account instead? I'm aware that the LIRA is locked in till retirement but I think that's a good thing.

Thanks in advance


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## MoneyGal (Apr 24, 2009)

Same tax benefits BUT you cannot make contributions to a LIRA.


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## Ahnutts (Nov 23, 2011)

Ok thanks for your help


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## Toronto.gal (Jan 8, 2010)

Only pension funds can be transferred to a LIRA account. 

http://www.taxtips.ca/pensions/rpp/lira.htm


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## sheilar (Dec 2, 2011)

*Another Lira question*

I had a federally regulated pension. (a bank) I transferred it to a locked in retirement account. With the new regulations I felt I was able to unlock the funds based on "small amount" balance. My agent informed me the funds in the LIRA were under provincial legislation. A little research on my part turned up the fact that federally regulated funds must be transferred into locked in accounts under federal legislation. 
So, if I am correct, the funds should never have gone into a LIRA but into a different locked in account that is federally regulated. What should happen here? Can the original LIRA be voided? I assume the funds shouldn't remain in an account where they should never have gone in the first place. Who is responsible and what should I look for to happen?

Would love some feedback.

Thanks
Sheila


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## londoncalling (Sep 17, 2011)

*a related LIRA question*

I recently received a reassessment for 2010. The problem with the reassessment is that my accountant, former accountant, claimed a pension rollover into a LIRA, as income and RRSP. As a result I had an over contribution to my RRSP and was taxed accordingly. I had the accountant file an adjustment to correct this. After failing to submit the adjustment I emailed her again with a CC to the CRA. My accountant resubmitted the adjustment and sent me the adjustment information. After the CRA had a look at it they tried to contact my accountant to clarify some details. My accountant failed to return phone calls emails etc. The CRA contacted me and I answered the questions that were asked regarding the rollover and that my options were to rollover to a LIRA or lock in my pension with the company that I had worked for. As a result it would be a tax sheltered rollover etc.

My reassessment is now completed and it is higher than it was originally. I will be contacting the CRA regarding the reassessment next week. It is my understanding that I will be double taxed on this money. The rollover was a transfer of tax sheltered income to a tax sheltered instrument (LIRA) so it should not be considered income nor an RRSP contribution as this amount was already taken from existing contribution room when it was originally pensionable if I understand correctly. The only rational I can think is that since it was a commuted value based on a DB pension that the full amount was considered the employer contribution. Does it matter that the company that administers the pension is from another province? My bank has confirmed that the rollover was a tax sheltered transfer.

I will be setting up an appointment with a different accountant to get a second opinion. Any other options that I should explore? I was just hoping someone can enlighten me and help me prepare going forward. Can anyone offer any insight or knowledge to my scenario. Possibly it is related to Sheila R's post. 

Thanks in advance


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## brocko (Apr 20, 2009)

When I took the retirement option my Cv was put into a LIRA. Now that I wish to take out an income these monies will be put equally to a LIF and a Personal RIF so that I can pull out more than the maximum prescribed amounts of the LIF as I am told I can unlock some of that money. This was arranged by the TDW guy. Does this make sense?


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## OhGreatGuru (May 24, 2009)

sheilar said:


> I had a federally regulated pension. (a bank) I transferred it to a locked in retirement account. With the new regulations I felt I was able to unlock the funds based on "small amount" balance. My agent informed me the funds in the LIRA were under provincial legislation. ...


Didn't you ask this same question on Financial Web Ring? http://www.financialwebring.org/forum/viewtopic.php?f=30&t=114326&p=449207&hilit=LIRA#p449207

Were the answers there no help?


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