The LRIF option What is an LRIF? A Locked-In Retirement Income Fund (LRIF) is a registered plan intended for locked-in money. It allows its annuitant to maintain investments on a tax-sheltered basis while receiving an income. Like a LIF, payments made from an LRIF must fall between legislated minimum and maximum withdrawal amounts each year. Each year (beginning the year after you open an LRIF), you must begin receiving a minimum amount of income as determined by Canada Revenue Agency (CRA). The minimum depends on the value of the LRIF at the beginning of the year and the annuitant's age. The LRIF maximum is calculated based on the investment income earned in the plan during the prior year. A word of caution – Because the LRIF maximum is based primarily on investment income, a gap between the minimum and maximum payments will generally occur only when investment returns are greater than the minimum. In years where LRIF earnings are lower than the minimum, the withdrawal will be restricted to the minimum amount. Any payments received from a LRIF are taxable and must be included as income in the year they are received. Although you cannot make contributions to an LRIF, you can transfer registered money into an LRIF at any time provided it comes from a locked-in source. For more details about LRIFs, see the Retirement Income Options. This option might be right for you if you have locked-in funds and your retirement goals are… Maintaining control over investments - you want to continue to manage your investments. Flexible income payments - you want the flexibility to control payment details, including payment frequency, amount and withholding tax details. Convenience - you want the convenience of regular income payments but also want the flexibility to make additional lump sum withdrawals.