Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Can a taxpayer access funds in her LIF?
Position: This is not our area of jurisdiction.
Reasons: The maximum withdrawal limits are governed by provincial pension legislation.
Signed on July 13, 2001
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Martin Cauchon, Minister of National Revenue, has asked me to reply to your letter addressed to XXXXXXXXXX, concerning the access to funds in your life income fund (LIF). XXXXXXXXXX sent a copy of your letter to Mr. Cauchon on May 29, 2001.
I am sorry to hear about your unfortunate situation. However, the federal pension legislation, The Pension Benefits Standards Act, does not appear to apply in your case. As XXXXXXXXXX has pointed out, the matter falls under provincial jurisdiction, and, from the information that you have provided, the maximum amounts that may be withdrawn from your LIF appear to be governed by the Quebec pension legislation, An Act Respecting Supplemental Pension Plans. Accordingly, I suggest that you contact the Quebec provincial government in this regard. I see that your bank manager has provided you with the name of a person to contact.
In response to you, XXXXXXXXXX mentioned clause 60(l)(ii)(A) of the Income Tax Act. This clause refers to a type of annuity that may be purchased with the funds in your LIF. I understand, however, that you are looking to withdraw amounts from your LIF over and above the amounts currently provided by the LIF. As a consequence, this provision is not applicable and as noted above, the Quebec provincial legislation, rather than the Income Tax Act, governs the transaction you wish to undertake.
I appreciate the opportunity to address your concerns.
Yours sincerely,
Bill McCloskey
Assistant Commissioner
Policy and Legislation Branch
Sherry Thomson
957-2747
June 18, 2001
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