Canadian Tax and
Financial Information
Locked-in Retirement Income Fund (LIF)

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Glossary  ->
   RRSP-RRIF-TFSA   ->   Life Income Fund (LIF)

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:

bulletthe owner of the LRIF controls which investments are held
bulletan LRIF is subject to the same minimum withdrawal rules as a RRIF
bulletan LRIF is subject to maximum withdrawal rules under either federal or provincial legislation

See Locked-in Retirement Account (LIRA) on our Company Pensions page for more information.

Revised: September 27, 2017


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