Mozaic Finance glossary Registered accounts

LIRA: the Locked-In Retirement Account, explained

A LIRA is where your pension goes when you leave an employer: it holds the money, keeps it invested and tax-deferred, but locks it in until retirement under pension rules.

A Locked-In Retirement Account (LIRA) holds money that came out of a registered pension plan, usually when you left a job that had a pension. In Quebec, the equivalent account is called a compte de retraite immobilise, or CRI.

How a LIRA works

  • It is funded by a transfer from a registered pension plan, not by new contributions. You cannot add fresh money to a LIRA.
  • The funds are locked in under federal or provincial pension legislation, so you generally cannot withdraw them as cash before retirement.
  • Investments inside a LIRA grow tax-deferred, like an RRSP.
  • At retirement, a LIRA is converted into a LIF (Life Income Fund) or a similar vehicle to draw an income.
  • Limited unlocking may be allowed in specific situations, such as small balances, financial hardship, or non-residency, and the rules vary by jurisdiction.

How Mozaic tracks your LIRA

In Mozaic, LIRA is a first-class account type, along with the locked-in accounts it converts into, like the LIF. Connect it through SnapTrade or Plaid, or add it by hand, and its balance and holdings roll into your net worth.

Mozaic tracks the value and holdings. It does not model the locking-in or unlocking rules, which are set by the pension legislation that governs your account.

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Frequently asked

Generally not as cash before retirement. The funds are locked in under pension legislation. At retirement you convert the LIRA to a LIF or a similar account to draw an income, and limited unlocking may be allowed in specific situations.
Both are tax-deferred, but a LIRA holds pension money and is locked in: you cannot make new contributions, and you cannot withdraw freely before retirement. An RRSP accepts new contributions and allows withdrawals, taxed, at any time.
Yes. LIRA is a first-class account type in Mozaic: connect it or add it by hand, and its balance and holdings roll into your net worth. Mozaic tracks the value, not the locking-in rules.