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:

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:

  • The difference between the maximum available amount and the minimum withdrawal
  • Maximum income

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