Overview

You can withdraw funds from your LIF through your Wealthsimple account. A LIF has both a minimum and maximum amount you must withdraw each year, set by the government. We'll help you stay within these limits when you make a withdrawal.

It's important to withdraw your minimum amount by the end of each calendar year. The Canada Revenue Agency (CRA) requires us to make the withdrawal for you if you don't.

Find your minimum and maximum withdrawal amounts

You can find your yearly minimum and maximum withdrawal amounts in your Wealthsimple account:

How to make a withdrawal

When you make a withdrawal from an LIF, you can choose whether to withdraw your annual minimum amount, your annual maximum amount, or another amount within your limits. You must withdraw at least the minimum amount by the end of the calendar year. Any amount greater than your minimum withdrawal will be subject to withholding tax.

You must log in to Wealthsimple on a laptop or computer and follow these steps to make a withdrawal:

1. Log in to your Wealthsimple profile
2. Select the Move tab
3. Select Transfer money
4. In the From field, select your LIF
5. In the To field, select your desired linked bank account
6. Under Amount, select One-time, Installments, or Custom to specify an amount
   1. One-time 
      1. Clients can withdraw the full annual minimum amount in a one-time withdrawal. Withholding tax isn't applied.
      2. Clients can withdraw the full annual maximum amount in a one-time withdrawal. Withholding tax is applied on any amount above the annual minimum once the annual minimum is reached.
   2. Installments 
      1. Clients can withdraw the full annual minimum amount in installments. Withholding tax isn't applied.
      2. Clients can withdraw the full annual maximum amount in installments. Withholding tax is applied on any amount above the annual minimum once the annual minimum is reached.
   3. Custom will allow you to modify your withdrawal amount, withholding tax, and frequency. The withholding tax amount cannot decrease below the minimum withholding tax rate.
7. Select the Frequency for the withdrawal (applicable for Installments and Custom)
8. The tooltip next to the withholding tax amount explains the tax rate being applied
9. Select Next
10. Confirm your withdrawal details
11. Select Submit

Multiple withdrawals

Per Canada Revenue Agency’s (CRA) general anti-avoidance guidance, where it appears that an annuitant is making separate taxable withdrawals from an RRSP/FHSA/RRIF/LIF to minimize the income tax withheld, for example, where a series of requests are made in a short period of time, it is the CRA's position that the withholding rate should be determined as if multiple withdrawals were combined into a larger lump sum. Thus, a higher withholding tax rate could apply.

Withdrawing more than your minimum amount

If you withdraw more than your yearly minimum amount, the extra funds are subject to a withholding tax. We automatically deduct this tax from your withdrawal and send it to the government. The amount of withholding tax depends on your province of residence.

LIRA to LIF conversion considerations

When you convert your Locked-in Retirement Account (LIRA) to a LIF, you aren't required to make a minimum withdrawal in that calendar year. Any withdrawals you make in this conversion year are subject to withholding tax.

There also won't be an automatic maximum withdrawal limit set up for your account in the year you convert your LIRA to a LIF. If you wish to make a withdrawal, we'll need to manually generate this maximum for you. Please contact our support team so that we can provide you with the maximum amount for the year and help you set up your withdrawal.

Understand Quebec LIF changes

The Province of Quebec has introduced significant changes to the LIF payment regulations, which came into effect on January 1, 2025.

Highlights of the changes:

• There's no upper limit related to withdrawals (no maximum income) for annuitants aged 55 or over at the time of withdrawal application. The minimum amount remains unchanged.
• No amount can be directly transferred from a LIF to an RRSP, a RRIF, or a non-locked-in account under a voluntary retirement savings plan (VRSP).
• You can no longer request a refund of the balance (unlocking) of a life income fund (LIF) in either of the following two situations:
  • Small amount unlocking: You're 65 and over, and the total of the locked-in amounts accrued does not exceed 40% of the maximum pensionable earnings of the year.
  • Non-resident unlocking: You haven't lived in Canada for at least 2 years.

For more details, please review the following link from Retraite Québec: Amendments related to LIFs as of 2025.

Frequently asked questions