2

I would like to invest is a private company using money from my LIRA (locked in retirement account).

I know this is allowed, similar to holding private mortgages under these accounts, but how do I actually go about doing this? How do I get the actual money in that account into the hands of the company to buy the stock certificates and hold them designated as if they are under that LIRA?

1

It may be possible to hold private company shares within an RRSP, assuming you are not related to that company per the definition shown here https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/definitions-rrsps.html#prohibited.

[In short, you can't own 10% or more of the company, either directly or indirectly - the most common type of share that might be possible to do this with, then, would be if you had shares through employment of a private company; if it's your own company or similar this won't be possible.]

However, LIRA legislation is actually pension legislation [dictated provincially], not tax legislation [for the most part dictated federally]. What you can do with LIRA funds is going to depend on the province you are in.

| improve this answer | |

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.