What's the difference between a LIF and a RRIF?

Both LIFs and RRIFs are tools for withdrawing savings in retirement. Money in a LIF is transferred over from a LIRA or other supplemental pension plan (e.g., LRSP), while money in a RRIF is transferred over from an RRSP. Both vehicles have minimum annual withdrawal amounts based on the owner's age and the value of the fund.
 

Compare the features of these two savings vehicles.

  LIF RRIF
Goal Retirement income Retirement income
Where do the funds come from? A LIRA or locked-in RRSP. An RRSP.
Is there a minimum annual withdrawal amount? Yes, depending on the owner's age and the value of the fund. Yes, depending on the owner's age and the value of the fund.
Is there a maximum annual withdrawal limit?

Provincial LIF: Yes, for people under 55.

Federal LIF: Always, regardless of age.

 No
Are withdrawals taxable? Yes Yes

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