Riscario

a variation of a LIF with no requirement to buy a life annuity

A Life Retirement Income Fund (LRIF) is a variation of a LIF

• locked-in funds can be transferred in
• no requirement to buy a life annuity by age 80
• foreign content restrictions (waived in 2005?)
• same minimum withdrawals as RRIFs
• taxed on withdrawals
• only available in Ontario, Alberta and Saskatchewan

Maximum Payout

• complex maximum payout
  • yr 1: 0.5% of initial value of LRIF per month
  • yr 2: max{6% of Jan 1 value, investment income earned in previous year}
  • yr 3+: max{investment income earned in previous year, earnings less all withdrawals since inception}