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 LIFs.
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: