Investment and Retirement
Amounts transferable from a LIF to an RRSP/RRIF in Quebec
To start the year off on the right foot, we wish to remind you of Quebec’s rules concerning transfers from a LIF to an RRSP or a RRIF.
LIF holders may transfer an amount from their LIF to an RRSP or RRIF if the amount does not exceed the maximum permitted.
MAXIMUM AMOUNT TRANSFERABLE WITHOUT APPLICATION FOR TEMPORARY INCOME (ANY AGE)
For the LIF holder who does not request a temporary income, the maximum transferable amount is the difference between the income maximum and the mandatory minimum withdrawal:
Maximum transferable amount = income maximum – mandatory minimum withdrawal
TRANSFERABLE WITH AN APPLICATION FOR TEMPORARY INCOME (AGE 54 TO 64)
For LIF holders who are over age 54 but under age 65 and who apply for temporary income, the maximum transferable amount is equal to the lesser of the following two amounts:
- Maximum income
- Difference between maximum income available and the mandatory minimum withdrawal where maximum income available is equal to the temporary income plus the adjusted maximum income.
Examples:
Maximum amount transferable = maximum income |
Maximum amount transferable = maximum available income - mandatory minimum withdrawal |
|
---|---|---|
John’s age | 60 years | 60 years |
LIF balance as at December 31, 2017 | $60,000 | $500,000 |
Maximum income | $4,020 | $33,500 |
Minimum income | $2,000 | $16,666.67 |
Temporary income | $22,360 | $22,360 |
Adjusted maximum income | $0 | $25,233.83 |
Maximum income available Maximum income available is equal to temporary income + maximum adjusted income |
($22,360 +$0) = $22,360 | ($22,360 + $25,233.83) = $47,593.83 |
Direct transfer to an RRSP The lesser of:
|
Therefore the lesser of: ($22,360 +$2,000) = $20,360
or $4,020 |
Therefore the lesser of: ($47,593.83 - $16,666.67) = $30,927.16
or $33,500 |