Glossary -> RRSP-RRIF-TFSA -> Life Income Fund (LIF)
Life Income Fund (LIF)
Income Tax Act s. 251(1), s. 251(2)
For tax purposes, a life income fund is treated as a registered retirement income fund (RRIF). There are no legislative provisions in the Income Tax Act for LIFs.
A LIF is a locked-in account which has been created with funds that originated with a registered pension plan (RPP). LIFs 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 a LIF:
 | the owner of the LIF controls which investments are held |
| a LIF is subject to the same minimum withdrawal rules as a RRIF |
| a LIF is subject to maximum withdrawal rules under either federal or provincial legislation |
See Locked-in Retirement Accounts on our Company Pensions page for more information.
Revised: October 26, 2023