Words and Phrases - "LIR"

a
88
b
44
c
79
d
52
e
38
f
31
g
19
h
14
i
74
j
2
k
2
l
32
m
56
n
25
o
38
p
81
q
3
r
76
s
90
t
47
u
16
v
9
w
23
y
2

8 July 2004 External T.I. 2004-0079771E5 F - Crédit pour pension - FRV

Summary Under
Tax Topics - Income Tax Act - Section 118 - Subsection 118(7) - Qualified Pension Income - Paragraph (a)
amounts from LIF not pension income

Is the taxpayer entitled to the pension credit regarding money received from a life income fund ("LIF"), with the money in the LIF coming from a locked-in retirement account ("LIRA") created as a result of a division of property at the time of the individual’s divorce? CRA stated:

[T]he LIRA is an arrangement that meets the requirements for a registered retirement savings plan ("RRSP") and the LIF meets the requirements for a registered retirement income fund ("RRIF"). Accordingly … a LIRA is simply an RRSP and a LIF is a RRIF.

… [A]mounts received from a LIF, i.e., a RRIF, do not constitute a life annuity out of or under a pension plan. Consequently, such income is not qualified pension income and does not qualify for the pension credit … .

Words and Phrases
LIR LIRA