What is the maximum withdrawal from an Alberta LIF?
Under Alberta's Employment Pension Plans Act and its Regulation, the maximum is the greater of the previous fiscal year's investment earnings, including unrealized gains and losses, and the formula amount C ÷ F. The interest rate inside F is the greater of 6.00% and the November CANSIM V122487 long-term Government of Canada bond yield for the first fifteen years, then 6.00% thereafter. Because that yield has been under 6% for decades, the 6.00% floor always governs and the percentages match Ontario's and British Columbia's to the fourth decimal.
The minimum is federal, so it is the same everywhere in Canada.
2026 Alberta LIF maximum withdrawal table
These percentages apply to the balance at the start of the fiscal year. They are shared with Ontario and British Columbia, and have not changed since 2021.
| Age on Jan 1 | Age attained during year | Maximum, % of Jan 1 balance |
|---|---|---|
| 55 | 56 | 6.5070% |
| 56 | 57 | 6.5659% |
| 57 | 58 | 6.6295% |
| 58 | 59 | 6.6983% |
| 59 | 60 | 6.7729% |
| 60 | 61 | 6.8537% |
| 61 | 62 | 6.9415% |
| 62 | 63 | 7.0370% |
| 63 | 64 | 7.1412% |
| 64 | 65 | 7.2551% |
| 65 | 66 | 7.3799% |
| 66 | 67 | 7.5169% |
| 67 | 68 | 7.6678% |
| 68 | 69 | 7.8345% |
| 69 | 70 | 8.0193% |
| 70 | 71 | 8.2250% |
| 71 | 72 | 8.4548% |
| 72 | 73 | 8.7129% |
| 73 | 74 | 9.0042% |
| 74 | 75 | 9.3351% |
| 75 | 76 | 9.7135% |
| 76 | 77 | 10.1495% |
| 77 | 78 | 10.6566% |
| 78 | 79 | 11.2525% |
| 79 | 80 | 11.9616% |
| 80 | 81 | 12.8177% |
| 81 | 82 | 13.8700% |
| 82 | 83 | 15.1921% |
| 83 | 84 | 16.8995% |
| 84 | 85 | 19.1852% |
| 85 | 86 | 22.3959% |
| 86 | 87 | 27.2256% |
| 87 | 88 | 35.2934% |
| 88 | 89 | 51.4563% |
| 89 | 90 | 100.0000% |
| 90 | 91 | 100.0000% |
What is the minimum you must withdraw?
The minimum is federal and identical in every province, because a LIF is a RRIF with extra restrictions layered on top. Section 7308 of the Income Tax Regulations sets it, applied to the balance at the start of the fiscal year and driven by your age on January 1 — not your age at year end.
- Age 70 or under on January 1: the factor is 1 ÷ (90 − age).
- Age 71 or over: the prescribed table applies — 5.28% at 71, rising to 20.00% at 95 and above.
- In the year the fund is entered into, the minimum is nil. Nothing has to come out in year one.
You may elect to use a younger spouse's age to lower the minimum, but the election must be made before any payment leaves the fund and cannot be revisited. It has no effect on the maximum, which is keyed to the owner reaching 90.
Why does Alberta's 50% unlocking halve your first-year maximum?
This is the single most consequential difference, and almost nothing on the web explains it properly. Alberta unlocks up to 50% of the LIRA, before any LIF is created. Ontario and the federal rules unlock out of the fund itself, after it exists.
The effect on your first-year ceiling is large. Take $500,000 of locked-in money at age 71 with 50% unlocked in both cases:
- Ontario: the full $500,000 is transferred into the LIF, the maximum is set on that balance at 8.4548% — $42,274 — and only then does the $250,000 leave.
- Alberta: $250,000 is unlocked from the LIRA first, so the LIF is established with $250,000 and the maximum is calculated on that: $21,137.
Identical money, identical 50%, roughly half the first-year ceiling. Alberta's version is available from age 50, is strictly one time only, and using part of it consumes all of it — unlock 30% and you cannot come back later for the other 20%.
What else is different about an Alberta LIF?
- Available from age 50, five years earlier than Ontario.
- No first-year proration. Open the fund in December and the full annual maximum is still available. Ontario would cut it to one twelfth. This is a real difference in the regulation, not a rounding choice, and it is worth knowing before you pick a transfer date.
- Small-amount unlocking is measured per account rather than across all your locked-in money: 20% of the YMPE ($14,920 in 2026) under 65, and 40% ($29,840) from 65.
How much tax is withheld?
Nothing is withheld on the minimum. On the amount above it, a single rate applies to that whole amount — outside Quebec, 10% up to $5,000, 20% over $5,000 to $15,000, and 30% above $15,000. These are cliffs, not brackets: $15,000 above the minimum is withheld $3,000, while $15,000.01 is withheld $4,500.
Withholding is only a prepayment. The entire withdrawal is taxable income, so what you finally owe depends on your total income, credits and province. If you draw only the minimum, nothing has been prepaid at all — the bill arrives at filing.
How does Alberta compare with the other jurisdictions?
| Alberta | Ontario | BC | Federal | |
|---|---|---|---|---|
| Maximum at 65 (age Jan 1) | 7.38% | 7.38% | 7.38% | 6.03% |
| Rate floored at 6% | Yes | Yes | Yes | No |
| Prior-year earnings alternative | Yes | Yes | Yes | No |
| LIF available from | 50 | 55 | 50 | No minimum |
| One-time 50% unlocking | From the LIRA | From the LIF | None | Via RLIF at 55+ |
| First-year proration | No | Yes | No | Yes |
Which set applies depends on the jurisdiction that regulated the original pension plan, not where you live now. An Albertan holding money from an Ontario-regulated plan follows Ontario's rules.
Frequently asked questions
What is the maximum withdrawal from an Alberta LIF in 2026?
Alberta's LIF maximum is the greater of the previous fiscal year's investment earnings and the formula C divided by F, and the percentages are identical to Ontario's because Alberta also floors the reference rate at 6.00%. As a percentage of the January 1 balance it is 6.5070% at age 55 on January 1, 7.3799% at 65 and 8.4548% at 71, reaching 100% in the year you turn 90.
At what age can you open an Alberta LIF?
Age 50, five years earlier than Ontario's minimum of 55. Alberta also allows its one-time 50% unlocking from age 50, whereas the federal equivalent requires you to be 55 or older.
How does Alberta's 50% unlocking work?
Alberta unlocks up to 50% of the LIRA before the LIF is created, so the LIF is established with only the remaining half and the first-year maximum is calculated on that smaller amount. Ontario and the federal rules unlock out of the fund itself, so their first-year ceiling rests on the full pre-unlock balance. It is available from age 50, strictly one time only, and taking part of it uses all of it.
Does Alberta prorate the LIF maximum in the first year?
No. Alberta has no first-year proration, so a LIF opened in December still has the full annual maximum available. Ontario and the federal rules both prorate to the months remaining in the year, counting a partial month as a full month.
Is the Alberta LIF minimum different from Ontario's?
No. The minimum is set federally by section 7308 of the Income Tax Regulations and is identical in every province. Below age 71 the factor is 1 divided by (90 minus your age on January 1); from age 71 the prescribed table applies, from 5.28% up to 20.00% at 95 and above.
The rules for other jurisdictions
Locked-in pension money follows the rules of the jurisdiction that regulated the original pension plan — not the province you live in now. If you moved provinces after leaving the employer, check which of these applies to you.