Terms for withdrawal from an LIF

The income that a LIF holder can draw 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 draw a life income at any time.

The holder 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:

• be under age 54 on 31 December of the year preceding the application
• have only one LIF
• not have income exceeding 40% of the maximum pensionable earnings (MPE), that is, $27 400, in the 12 months following the application for a temporary income, if the application is filed in 2024.

  Income includes any amounts received in the form of salary or wages, interest or benefits, or in any other form (before tax), including employment insurance benefits, Old Age Security benefits, an indemnity from the Commission de la santé et de la sécurité du travail (CSST), an indemnity from the Société de l'assurance automobile du Québec (SAAQ), interest income, bursaries or scholarships, disability insurance, or other. Income does not include any amounts received on behalf of others, such as Family Allowance payments or support payments.

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 draw 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 draw 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.

Beware of fraudulent withdrawals

We urge the LIF or LIRA holder to be wary of classified ads that propose various tax-free ways to withdraw money from an LIRA or LIF, such as by purchasing stock shares or taking out a loan. Those methods are fraudulent. They can have significant tax effects, and the LIF or LIRA holder could lose his or her money. To find out more, please consult the Fraud in classified ads  section on the Autorité des marchés financiers du Québec's website.