Withdraw from your Life Income Fund (LIF)

In this article:

Overview

You can withdraw funds from your Life Income Fund (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.

Note: The Province of Quebec has introduced significant changes to the LIF payment regulations, which will come into effect on January 1, 2025. Learn more about Quebec LIF changes.

Find your minimum and maximum withdrawal amounts

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

Web Mobile app
  1. Log in to your Wealthsimple account
  2. Select Move money from the Home page
  3. In the From field, select your LIF
  4. You will see your minimum and maximum withdrawal amount
Note: We'll redirect you to our old website. This is expected. 
  1. Log in to your Wealthsimple mobile app
  2. Tap the Move tab at the bottom of your screen
  3. Tap Move money
  4. Select your LIF as the source account
  5. Choose the destination for your withdrawal
  6. Tap Next
  7. Review how LIF withdrawals work
  8. Tap Next
  9. You'll see your Yearly minimum remaining which is the amount you must withdraw by the end of the calendar year

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.

Web Mobile app
  1. Sign in to your Wealthsimple account
  2. Select Move money from the Home page
  3. In the From field, select your LIF
  4. In the To field, select your desired bank account
  5. Choose your Reason for withdrawal
  6. In the Amount field, enter an amount
  7. Under Amount, you can select Minimum, Maximum, or Other
  8. Select your Frequency
  9. Click Set withdrawal
  10. Set withdrawal
  1. Log in to your Wealthsimple mobile app
  2. Tap the Move tab at the bottom of your screen
  3. Tap Move money
  4. Select your LIF as the source account
  5. Choose the destination for your withdrawal
  6. Tap Next
  7. Review how LIF withdrawals work
  8. Tap Next
  9. Enter an amount and tap Review
  10. Confirm your withdrawal details and Submit your withdrawal

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.

If you withdraw:

Withholding tax rate (excluding Quebec):

Withholding tax rate (Quebec residents):

Up to $5,000

10%

20%

Between $5,001 and $15,000

20%

25%

More than $15,001

30%

30%

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 reach out to our support team so that we can provide you with the maximum amount for the year and help you set up your withdrawal.

Important: Transferring a LIF between financial institutions within the first calendar year forfeits any maximum withdrawal amount.
Example: If you convert your LIRA this calendar year into a LIF, you aren’t required to withdraw any amount from your LIF until the following calendar year. If you decide to withdraw funds this year, they will be subject to withholding tax.

The following calendar year, you'll be required to withdraw the minimum amount, which won’t be subject to withholding tax. Any amount withdrawn over the minimum in the next calendar year will be subject to withholding tax.

Understand Quebec LIF changes

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

Highlights of the changes:

  • As of 1 January 2025, there is 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.
  • As of 1 January 2025, no amount can be directly transferred from a LIF to a registered retirement savings plan (RRSP), a registered retirement income fund (RRIF), or a non-locked-in account under a voluntary retirement savings plan (VRSP).
  • As of 1 January 2025, 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 (MPE) 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 to LIFs as of 2025 (English, French).

Frequently asked questions

Why do I need to withdraw my minimum before an internal transfer?

This is a requirement mandated by the CRA that Wealthsimple must follow when processing your internal transfer request.

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