Life Income Fund (LIF)
To ensure retirement income
Retirement
To ensure retirement income
- Enables you to receive retirement income each year
- Periodic withdrawals as required within the minimum and maximum limits set by law
- Authorized lump-sum withdrawals (subject to annual maximum)
The basics
- The Life Income Fund (LIF) is an extension of your LIRA or Locked-In RSP.
- Income is eligible for the federal and provincial pension income tax credit under certain conditions.
- There is no minimum age to convert your LIRA or Locked-In RSP to a LIF.
- Elusive sums.
- For federal and Ontario LIFs, a portion of the funds may be unlocked subject to legal conditions and limits.
- Transfer your LIRA or Locked-In RSP to a LIF no later than December 31 of your 71st birthday.
- Tax-sheltered investment growth until withdrawal.
- Upon death, the balance of the LIF is paid to the spouse or, under certain conditions, to the heirs.
- Conversion to an annuity possible at any time, in whole or in part.
- Amounts received from this plan are added to your income for the year.