Life Income Fund. A retirement income fund that is established by the transfer of locked-in funds from a Registered Pension Plan (RPP), Locked-in Retirement Savings Plan (LRSP), Locked-in Retirement Account (LIRA) and in some cases a Locked-in Retirement Income Fund (LRIF).
Life income fund. A type of Registered Retirement Income Fund (RRIF) created for LIRAs (see definition below) to provide retirement income. You make all the investment decisions with an LIF, but you must withdraw with set parameters each year after you reach retirement age. Amounts in an LIF are tax-sheltered until withdrawn.
Life Income Fund. The locked-in life income fund (LIF) is to the locked-in retirement account (LIRA) what the registered retirement income fund (RRIF) is to the registered retirement savings plan (RRSP). The only difference between these two types of contracts is the maximum withdrawal limit imposed on locked-in plans. Like the RRIF, the locked-in LIF requires a minimum withdrawal, but it also imposes a maximum withdrawal per year. Certain provincial regulations require that when the annuitant reaches the age of 80, the minimum for the year be paid out of the LIF and the remaining funds used to purchase a life annuity.