Régie des rentes du Québec

Types of income from your LIF

You can draw two types of income from your life income fund (LIF):

  • a life income
  • a temporary income, if your LIF so provides.

Amounts withdrawn from LIRAs and LIFs are taxable.

A life income...for as long as you live!

A life income is the retirement income you can draw every year from your LIF until your death. You can apply for it at any age.

As with RRIFs (registered retirement income funds), you must withdraw the minimum prescribed under taxation rules (the minimum is 0 $ the year in which the LIF is opened).

However, you cannot withdraw more than the maximum authorized for each year since the amounts in your LIF must be sufficient to give you an income until your death. The maximum is calculated on the basis of your age, the balance in your LIF and the reference rate set each year for LIFs.

At the beginning of each year, the financial institution calculates the minimum and maximum amounts that you are entitled to withdraw from your LIF during the year. You then receive the amount that you wish to withdraw according to the number of payments provided for in the contract with the financial institution.

Temporary income: an additional amount

You can withdraw an additional amount from your LIF, called a "temporary income". However, your LIF contract must offer the option of a temporary income and you must apply each year to your financial institution. Certain age-based criteria apply.

When your financial institution receives your application for a temporary income, it calculates the amount that you can withdraw (if you are entitled to do so) and has you complete the required declarations. Even though payment of a temporary income reduces the life income amount, the maximum income drawn from the LIF (temporary income plus adjusted life income) may in fact be higher.


Worth knowing about ...


A temporary income cannot be greater than 40% of the maximum pensionable earnings for the year in which the application is made, that is, 21 000 $ in 2014.



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