Which financial products can be used to transfer a pension plan?

The correct choice highlights specific financial products that align with the regulations governing pension plans, particularly in Canada. When transferring a pension plan, especially a locked-in pension, it is crucial to use products that maintain the tax-deferred status of the funds and abide by locking-in rules.

LIRA (Locked-In Retirement Account) serves as a primary vehicle for transferring funds from a pension plan. It allows individuals to retain their retirement savings in a tax-deferred account until they are ready to retire. Similarly, a Locked-in RRSP is another suitable option that provides flexibility in managing retirement savings while ensuring compliance with pension regulations.

A LIF (Life Income Fund) is designed for individuals to draw income from their locked-in retirement savings, following the regulations set for pension plans. It allows for periodic withdrawals while still adhering to minimum withdrawal requirements, ensuring the funds are distributed over an extended period to support retirement.

LRIF (Locked-In Retirement Income Fund) is also used to draw income from locked-in assets and acts similarly to a LIF, making it another valid option in this context.

These products collectively ensure that funds from a pension plan can be successfully transferred while adhering to the specific legal and tax regulations set forth for retirement savings in Canada. The other choices do not