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LIF Minimum and Maximum Withdrawal Limits for 2017

A Life Income Fund (LIF) is a type of Registered Retirement Income Fund (RRIF) established under the Income Tax Act (Canada), with the added provincial or federal pension act requirements associated with pension funds. 

As a result, the minimum annual withdrawals from an LIF are the same as for an RRIF, but the pension legislation dictates that a maximum annual withdrawal limit be set according to the governing provincial or federal pension legislation.

The maximum withdrawal limits for federal LIFs in 2017 have been set using the following long-term interest rate assumptions:

  • 2.06% for the first 15 years, and
  • 6.00% for the years remaining to the end of the year in which the LIF owner attains 90 years of age

 

If you're looking for specific numbers that apply to your LIF, try our 

2017 Life Income Fund Withdrawal Calculator

 

The table below outlines the minimum and maximum amount of money that can be withdrawn from an LIF for 2017

  

Age on

January 1st

Minimum

Withdrawal

Maximum

Withdrawal

Age on

January 1st

Minimum

Withdrawal

Maximum

Withdrawal

50

2.5000%

4.3412%

76

5.9800%

8.1277%

51

2.5600%

4.3758%

77

6.1700%

8.6682%

52

2.6300%

4.4130%

78

6.3600%

9.2993%

53

2.7000%

4.4532%

79

6.5800%

10.0458%

54

2.7800%

4.4966%

80

6.8200%

10.9422%

55

2.8600%

4.5435%

81

7.0800%

12.0387%

56

2.9400%

4.5943%

82

7.3800%

13.4101%

57

3.0300%

4.6494%

83

7.7100%

15.1743%

58

3.1300%

4.7093%

84

8.0800%

17.5277%

59

3.2300%

4.7745%

85

8.5100%

20.8238%

60

3.3300%

4.8456%

86

8.9900%

25.7698%

61

3.4500%

4.9233%

87

9.5500%

34.0153%

62

3.5700%

5.0084%

88

10.2100%

50.5097%

63

3.7000%

5.1019%

89

10.9900%

100.0000%

64

3.8500%

5.2050%

90

11.9200%

100.0000%

65

4.0000%

5.3188%

91

13.0600%

100.0000%

66

4.1700%

5.4451%

92

14.4900%

100.0000%

67

4.3500%

5.5856%

93

16.3400%

100.0000%

68

4.5500%

5.7427%

94

18.7900%

100.0000%

69

4.7600%

5.9192%

95

20.0000%

100.0000%

70

5.0000%

6.1185%

96

20.0000%

100.0000%

71

5.2800%

6.3450%

97

20.0000%

100.0000%

72

5.4000%

6.6041%

98

20.0000%

100.0000%

73

5.5300%

6.9029%

99

20.0000%

100.0000%

74

5.6700%

7.2507%

100

20.0000%

100.0000%

75

5.8200%

7.6597%

 

 

 

Note: If the minimum withdrawal amount specified in the Income Tax Regulations exceeds the maximum withdrawal amount permitted under subsection 20.1 of the Pension Benefits Standards Regulations, 1985 (determined in accordance with the above table), the maximum withdrawal amount can be equal to the minimum withdrawal amount.

Additional notes:

  • To calculate the actual minimum and maximum dollar amounts to be withdrawn the percentages in the table are multiplied by the LIF's market value on January 1st in the year of the intended withdrawal.
  • If the LIF is established at anytime during the calendar year, the percentage of the market value of the LIF must be multiplied by the number of months remaining in that year divided by 12, with any part of an incomplete month counting as one full month.
  • Here is a link to the Office of the Superintendent of Financial Institutions Canada with the updated minimum withdrawal rates: Office of Superintendent of Financial Institutions of Canada

Important Notice: In its 2015 budget, the federal government announced changes to the RRIF Minimum Annual Withdrawal Amounts for those that are 71 years of age and older.  For those of you that are younger than 71, there is no change to the required Minimum Annual Withdrawal amounts. The new RRIF withdrawal rates will apply for the 2015 and subsequent taxation years. To provide flexibility, the budget document says, RRIF holders (and we assume LIF holders) who withdraw more than the reduced 2015 minimum amount in 2015 will be permitted to re-contribute the excess to their RRIFs until Feb. 29, 2016. 

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