LIRA
A LIRA is a retirement savings plan that is established by the transfer of locked-in funds from a Registered Pension Plan (RPP) or another locked-in retirement savings/income plan such as a Locked-in Retirement Savings Plan (LRSP), Locked-in Retirement Account (LIRA), Life Income Fund (LIF) or Locked-in Retirement Income Fund (LRIF).
RRIF
A Registered Retirement Income Fund is a fund that is commonly used to
"store" your accumulated RRSP capital while it is still growing on a
tax-deferred basis. However, there are minimum requirements for how much
you can take out of a RRIF and all income taken out becomes part of your
taxable income.
The minimum withdrawal amounts are determined by the Income Tax Act,
however you may withdraw mor then the minimum if required. The minimum
withdrawal from a RRIF is based on the value of the assets in the plan
on January 1st of each year.
RRIFs are governed by the Income Tax Act and the rules can and do
change. In 2007 the minimum withdrawal requirement will be waived for
those turning 70 or 71 in 2007 and in 2008 for those turning 71 in
2008..
Click here for a table showing the minimum percentage that has to be withdrawn annually based on age.
RESP
A Registered Education Savings Plan or RESP is a savings account used by parents to save for their children's post-secondary education in Canada. The principal advantages of RESPs are the access to the Canada Education Savings Grant (CESG) and a source of tax-deferred income.
The amount being invested is NOT eligible for tax refunds, but the growth is not taxed.
