Locked-In RRSPS

Question: My question has to do with Locked-In RRSPs. What, exactly is meant by locked-in? If I want to transfer these funds from one fund company to another, what are the implications? If I want to leave them where they are, but want to draw on them during retirement, how do I do this and what are the implications?

Gordon Pape answer: The money in locked-in RRSPs cannot be accessed until you convert the plan to an annuity or a Life Income Fund (LIF). The latter operates much like a RRIF, except you are limited in terms of the amount of money you can take out each year (there is no limit on a RRIF). Also, a LIF must be converted to an annuity by age 80. You can move money from one institution to another within a locked-in account you just can’t take it out or move it to a non locked-in plan.