How much money can be withdrawn from a life income fund (LIF)?
The LIF provides an income for life, that is, a retirement income until the holder’s death. It also provides the option of a temporary income. At the beginning of each year, the financial institution calculates the maximum and minimum amounts that can be withdrawn from the LIF during the year. It is possible to get an estimate of the life income or temporary income that can be withdrawn using LIF Quick Calc, a calculator available as part of the Régie’s on-line services. Under certain circumstances (non-resident of Canada , age 65 or older, or death), it is possible to obtain a refund of an LIF. Transfer Life income and temporary income are subject to income tax unless the amounts are transferred directly to an RRSP, in which case the tax will be deferred. The amount that can be transferred corresponds to the difference between the maximum and minimum amounts that can be withdrawn. However, other limits apply to LIF holders age 54 to 65 (see Newsletter Express 8 May 2000, page 2). For
