LIF (Life Income Fund)

Savings Accounts

What your LIRA becomes when you start taking retirement income. Similar to an RRIF but with both minimum and maximum withdrawal limits. RRIF only has minimums. The maximum limit ensures your money lasts longer.

Related Terms

TFSA (Tax-Free Savings Account)

A special savings account where your money grows tax-free and you can take it out anytime without paying taxes. Think of it like a magic piggy bank where whatever you earn inside stays yours completely. Available to Canadians 18 and older with an annual contribution limit ($7,000 in 2025).

RRSP (Registered Retirement Savings Plan)

A retirement savings account where you get a tax refund when you contribute, but you pay tax when you withdraw in retirement. Your money grows tax-free inside the account until you take it out. The government is basically giving you a discount now if you promise to save for later.

FHSA (First Home Savings Account)

A new account (launched in 2023) that combines the best features of TFSA and RRSP for first-time home buyers. You get a tax refund when you contribute AND you can withdraw tax-free for your first home. Maximum $40,000 lifetime contribution, $8,000 per year. Unlike RRSP, you must contribute by December 31. There is no 60-day grace period.