Want your Money? Come and Get it! 

Do you have a pesky Locked-In Retirement Account (LIRA) or Life Income Fund (LIF) that you want access to without a huge tax burden?  

If you’re currently withdrawing the minimum annual payment from your LIF, or if you have a LIRA and want to explore if you can unlock some or all this money — we can help.  

There are different rules for different pension legislations, provincial and/or federal, but there is one rule that is uniform across almost all jurisdictions – If you’re only taking the minimum annual payment from your LIF, you can unlock the difference between the Minimum Annual Payment and Maximum Annual Payment and transfer tax-deferred to a RRIF (or an RRSP if you haven’t reached age 71), on a tax deferred basis – giving your access to this money subject to taxes on a withdraw. Ultimately giving you a little more financial freedom.  

A primary reason for utilizing this strategy is to give you peace of mind that you have increased financial flexibility if you need to access more than the maximum LIF payment set out by the pension legislation.  

Your advisor can tell you what the minimum and maximum amounts are each year (based on a calculation of your December 31st balance), subject to change on an annual basis.  

There are special circumstances where this can’t be completed: 

  • Prescribed RRIF (Saskatchewan): This only has a minimum annual payment, and no maximum annual payment; therefore this strategy wouldn’t work.  
  • Temporary Income (Quebec, Nova Scotia, and Newfoundland and Labrador): If you’re receiving temporary income, it’s important to confirm if this unlocking strategy can be completed.

Contact us today to find out how you can increase the minimum annual payment you receive from your LIF, or unlock some or all money from a LIRA.