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LIRA's / LIF's

What is a LIRA / LIF?

> A LIRA is a Locked In Retirement Account and a LIF is a Life Income Fund

> A LIRA is the result of commuting the value out of a company pension plan and

   maintaining the income tax deferred status

> You must convert LIRA's to LIF's by December 31 the year you turn 71

> LIF's require you to take out funds either monthly or yearly. There is a maximum / minimum

   withdrawal amount

> Withdrawals from LIRA's and LIF's will have income tax paid at time of withdrawal]

> You cannot start to withdraw from a LIRA until you reach 55

> You can transfer your LIRA to a LIF at 55 and within 60 days of transfer you can withdraw

    up to 40% (Income tax will be paid at the appropriate taxable rate)