RRSP-RRIF-TFSA
-> Locked-in Retirement Income Fund (LRIF)
Locked-in Retirement Income Fund (LRIF)
Income Tax Act s. 251(1), s. 251(2)
For tax purposes, a locked-in retirement income fund is treated as a
registered retirement income fund (RRIF). There are no legislative
provisions in the Income Tax Act for LRIFs.
An LRIF is a locked-in account which has been created with
funds that originated with a registered pension
plan (RPP). LRIFs are governed by federal or
provincial pension legislation. Some
provinces have LIFs, some have LRIFs, and some have both. One difference, where both exist, is the calculation
of maximum annual withdrawals.
Characteristics of an LRIF:
the owner of the LRIF controls which
investments are held
an LRIF is subject to the same minimum
withdrawal rules as a RRIF
an LRIF is subject to maximum withdrawal rules
under either federal or provincial
legislation