Maximum amount transferable with no application for a temporary income (any age)
The holder of a life income fund (LIF) can transfer an amount from an LIF to a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF), provided the transfer does not exceed the maximum allowed.
For LIF holders who do not apply for a temporary income, the maximum amount transferable is equal to the difference between the life income ceiling and the mandatory minimum withdrawal, calculated as follows:
Maximum amount transferable = life income ceiling – mandatory minimum withdrawal.
Note that...
- For the purposes of the calculation, the holder's age is determined as at 31 December of the year preceding the application for the transfer of an amount from an LIF to an RRSP or RRIF.
- The transfer of an amount from an LIF to an RRSP is no longer possible after 31 December of the year in which the holder of an LIF turns 71. At that point, an amount can only be transferred to an RRIF.
- The LIF QuickCalc online service enables you to calculate a life income.
- The Canada Revenue Agency sets the minimum yearly amount to be withdrawn from an LIF, which corresponds to the minimum amount to be withdrawn from an RRIF
. The minimum is $0 the year in which the LIF is opened.
A helpful example...
| Mark's age on 31 December 2023: | 60 years |
| LIF balance: | $300 000 |
| Life income ceiling: | $20 100 |
| Mandatory minimum withdrawal: | $10 000 |
Maximum amount transferable from an LIF to an RRSP or RRIF
= life income ceiling – mandatory minimum withdrawal
= $20 100 - $10 000
= $10 100
In 2024, the maximum income that Mark can draw from his LIF is $20 100. He must withdraw a minimum of $10 000. He can transfer a maximum of $10 100 to an RRSP or RRIF.