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Self-Directed Locked-In Retirement Account (LIRA)†

A LIRA (also known as Locked-in Retirement Savings Plan (LRSP) in some provinces) is a type of retirement savings account designed to hold pension funds from previous employers. These funds grow tax-deferred within the LIRA/LRSP until you begin withdrawing them. A LIRA/LRSP is locked-in, meaning you cannot access the funds except in specific circumstances. Self-Directed LIRAs/LRPS offer wide investment choices, allowing you to choose how your pension funds are invested, giving you flexibility and control.

  • Grow your pension fund, defer taxes

    If you changed jobs and were part of a pension plan, your pension may be transferred to a LIRA/LRSP and continue to grow on a tax-deferred basis.

  • Plan your retirement your way

    Enjoy control and flexibility by aligning investments with your unique risk tolerance, time horizon, and retirement goals. 

  • Locked plan, unlocked potential

    Like with a Registered Retirement Savings Plan (RRSP), you can invest in a wide range of assets and adapt investment strategy as per your circumstances and potentially achieve high returns.

  • Trade across markets in Canada and the U.S.

    Diversify your portfolio and build balance with access to major markets across North America.

Am I eligible for a TD Direct Investing LIRA?

To open a LIRA, you must:

  • Be a Canadian resident with a valid Social Insurance Number (SIN), for tax purposes.
  • You must have funds from a previous employer pension plan to transfer into a LIRA.
  • Be under 71 years. You must convert your LIRA/LRSP to a Life Income Funds (LIF) or Locked-In Retirement Income Funds (LRIF)or other eligible options before December 31 of the year you turn 71.
  • Be the age of majority in your province. 

Things to consider when opening a LIRA/LRSP 

Comparing LIRA/LRSP to RRSP at TD Direct Investing

Both LIRA/LRSP and RRSP are designed to support you during retirement but there are some key differences between the two.

LIRA/LRSP

RRSP
Primary purpose
Retirement and certain eligible withdrawals 
Generally, for retirement, eligible Home Buyers Plan(HBP) or eligible Lifelong Learning Plan (LLP) withdrawals 
Source of funds
Employer registered pension fund 
18% of previous year’s earned income (maximum limits apply), less pension adjustments + unused RRSP contribution room 
Is there an annual contribution limit
Not applicable, only transfers permitted
Yes
Tax impact on contributions 
Not applicable, only transfers permitted
Generally, tax-deductible
Growth
Tax-deferred
Tax-deferred
Withdrawals
Eligible withdrawals are subjected to withholding tax.
Eligible withdrawals are subjected to withholding tax.

More investment choices

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