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Financial Planning -> Pensions -> Registered Pension Plans (RPPs) - LIF and LRIF minimum and maximum withdrawals

LIF and LRIF Minimum and Maximum Withdrawals

Minimum Withdrawals

Life income funds (LIFs) and locked-in retirement income funds (LRIFs) are subject to minimum withdrawals under the Income Tax Act (ITA).  The ITA treats LIFs and LRIFs the same as registered retirement income funds (RRIFs).  See the article on our RRSP/RRIF page for the factors used to calculate minimum withdrawals.  There is no withdrawal required in the year the LIF or LRIF is started.

Use our RRIF calculator to calculate minimum withdrawals.  The RRIF calculator will not calculate maximum withdrawals for locked-in accounts.

Maximum withdrawals

LIFs and LRIFs have maximum annual amounts that may be withdrawn.  The maximum amounts are regulated by federal or provincial pension legislation (not the Income Tax Act), depending on the plan from which the LIRA originated.  The maximum is usually the greater of:


the investment gains from the account in the previous calendar year, or


an amount determined by multiplying the beginning of year balance by a prescribed annuity factor, which depends on an interest rate and the owner's age.

Federally Regulated LIF and LRIF Maximum Withdrawals

If your LIF or LRIF is federally regulated, the percentages in the table from the website of the Office of the Superintendent of Financial Institutions (OSFI) can be used to determine the maximum annual withdrawal for the year.  The percentages in the table change each year, as they are determined by reference to the CANSIM B14013 rate in effect during the previous month of November.

For provincially regulated funds, follow the links in the table of RPP regulators to find information on how your maximum withdrawal is calculated.


Revised: December 04, 2013



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