Amount transferable from an LIF to an RRSP or RRIF

Each year, the holder of a life income fund (LIF) can transfer a specific amount from an LIF to:

  • a registered retirement savings plan (RRSP)


  • a registered retirement income fund (RRIF).

The amount transferred must meet the following requirements:

  • It must not include the minimum amount that must be withdrawn from the LIF, since that amount must be taken as a cash payment.
  • It must not be calculated according to the RRSP deduction limit This link will open in a new window..
  • It must not increase the yearly maximum that can be withdrawn from the LIF.

The maximum amount that the holder can transfer from an LIF to an RRSP or RRIF varies depending on whether he or she has applied for a temporary income from an LIF. For additional information and examples, consult:

Note that...
  • For the transfer of an LIF to an RRSP or RRIF to be tax exempt, all fiscal rules must be followed.
  • The Canada Revenue Agency sets the minimum yearly amount to be withdrawn from an LIF, which corresponds to the minimum amount to be withdrawn from an RRIF  This link will open in a new window.. The minimum is $0 the year in which the LIF is opened.
Worth knowing about...

The holder can draw a life income from an LIF at any age.

Each year, the holder must withdraw a minimum amount from his or her LIF, without exceeding the maximum withdrawal allowed.

If the LIF so provides, the holder can also withdraw an additional income called a "temporary income," subject to certain conditions.

Even though the payment of a temporary income decreases the amount of a life income, the maximum income from the LIF (i.e., the temporary income plus the adjusted life income) may be greater.

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