A LIF is designed to provide a
retirement income for the rest of the holder’s life. It can be used to grow savings, tax-free, transferred over from a locked-in RRSP, a LIRA, a registered pension plan or another LIF.
- Money grows tax-free until withdrawn
- When holder dies, money goes to beneficiary
- Guaranteed lifetime income
- To ensure lifetime income, withdrawals subject to annual minimum and maximum
- Locked-in assets must be converted to LIF no later than December 31 of year the person turns 71