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Ensuring income in retirement
- Annual retirement income
- Periodic withdrawals as needed (subject to legal minimum and maximum amounts)
- Lump-sum withdrawals (subject to annual maximum)
- LIFs are the extension of LIRAs or locked-in RSPs.
- Income from LIFs is eligible for both federal and provincial pension income tax credits, subject to certain conditions.
- There is no minimum age for converting your LIRA or locked-in RSP to a LIF.
- Funds in LIFs cannot be seized.
- A portion of the funds in federal and Ontario LIFs can be unlocked, subject to legal conditions and limits.
- You can transfer all or a portion of your LIRA or locked-in RSP to a LIF no later than December 31 of the year you turn 71.
- Investments grow tax-sheltered until you withdraw them.
- At death, a LIF balance is transferred to your surviving spouse or, in certain conditions, to your estate.
- LIFs can be converted to annuities in whole or in part at any time.
- Funds you receive from a LIF are part of your annual income.