RRIFs, LIFs, LIRA
Registered Retirement Income Fund (RRIF)
A RRIF is an extension of an RRSP. Your funds from your RRSP must be transferred into a RRIF by the end of the year in which you turn age 71.
- Earnings on your investments are tax-free;
- Amounts paid out are taxable;
- A minimum annual withdrawal, based on your income, is mandatory;
- Your RRIF investment can be transferred tax-free to your spouse after your death.
Life Income Funds (LIFs)
A LIF, like a RRIF, is an extension of a LIRA. It provides a locked-in income amount in your retirement years with the funds originating from your pension.
Locked In Retirement Account (LIRA)
A LIRA is similar to an RRSP in that it holds your invested funds until the time that you retire. It is an investment account designed to hold any locked-in pension funds invested by a previous employer.