Terms for withdrawal from an LIF

The income that a holder can withdraw from his or her life income fund (LIF) is directly related to his or her age.

Under age 54

Two options: life income and temporary income.

The holder can withdraw a life income at any time.

He or she can also draw a temporary income each year if the LIF offers this option. To be entitled to a temporary income, he or she must meet the following conditions:

• be under age 54 on 31 December of the year preceding the application
• have only one LIF
• the other income that the holder expects to receive over the 12 months following the application for a temporary income must not exceed 40% of the maximum pensionable earnings (MPE), that is, 20 440 $, if the application is made in 2013

The application for a temporary income is valid only for the year in which it is made.

Age 54 to 64

Two options: life income and temporary income.

The holder can withdraw a life income at any time.

The holder can also draw a temporary income each year if the LIF offers that option, regardless of his or her employment income. To be entitled to a temporary income, he or she must be at least 54 years of age and less than 65 years of age on 31 December of the year preceding the application.

The application for temporary income is valid only for the year in which it is made.

Age 65 or over

One option: life income

The holder can withdraw a life income from his or her LIF, but can no longer obtain a temporary income if he or she is age 65 or over as of 31 December of the year preceding the application. At age 65, he or she can generally begin receiving a pension under the Québec Pension Plan and, depending on his or her age, a federal Old Age Security Pension.