Words and Phrases - "LIRA"
8 July 2004 External T.I. 2004-0079771E5 F - Crédit pour pension - FRV
Is the taxpayer entitled to the pension credit regarding money received from a life income fund ("LIF"), with the money in the LIF coming from a locked-in retirement account ("LIRA") created as a result of a division of property at the time of the individual’s divorce? CRA stated:
[T]he LIRA is an arrangement that meets the requirements for a registered retirement savings plan ("RRSP") and the LIF meets the requirements for a registered retirement income fund ("RRIF"). Accordingly … a LIRA is simply an RRSP and a LIF is a RRIF.
… [A]mounts received from a LIF, i.e., a RRIF, do not constitute a life annuity out of or under a pension plan. Consequently, such income is not qualified pension income and does not qualify for the pension credit … .
6 November 2014 External T.I. 2014-0528521E5 F - Payment of management fees by employer
Before going on to indicate that there generally is a taxable employment benefit where the employer pays the fund management fees for a group RRSP plan including locked-in retirement accounts, CRA stated:
“LIRA” has no meaning for the purposes of the Act. As noted in paragraph 22 of Information Circular 78-18R6, an LIRA is an arrangement that meets both the locking-in requirements under pension standards legislation as well as the requirements in the Act for RRSPs. The funds in such an account come from a registered pension plan. For the purposes of the Act, the LIRA is an agreement that meets the requirements for RRSPs. As a result, for the purposes of the Act, an LIRA is simply an RRSP.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | taxable benefit on employer payment of RRSP (including LIRA) and TFSA fund management fees but not those of DPSPs or SERPs | 68 |