What is the maximum withdrawal from a federal LIF?
Federal locked-in money — from a pension plan regulated under the Pension Benefits Standards Act, which covers banking, telecommunications, interprovincial transport and other federal works — uses the formula amount C ÷ F and nothing else. C is the balance at the start of the fiscal year; F is the present value of $1 a year payable in advance to December 31 of the year you turn 90.
The rate inside F is the November CANSIM V122487 long-term Government of Canada bond yield for the first fifteen years, then 6.00% thereafter. For 2026 that yield is 3.49%, measured in November 2025. Unlike the provincial rules there is no floor, so the federal table is genuinely different every year and OSFI republishes it each January.
If the fund is established part-way through a year, the maximum is prorated to the months remaining, with a partial month counting as a full month.
2026 federal LIF maximum withdrawal table
Built on the November 2025 reference rate of 3.49%, shown against the floored provincial table for comparison. These percentages apply to the balance at the start of the fiscal year, and will change next January when the new reference rate is published.
| Age on Jan 1 | Federal 2026 maximum | Ontario / AB / BC | Difference |
|---|---|---|---|
| 55 | 5.2096% | 6.5070% | -1.30 pp |
| 56 | 5.2637% | 6.5659% | -1.30 pp |
| 57 | 5.3224% | 6.6295% | -1.31 pp |
| 58 | 5.3861% | 6.6983% | -1.31 pp |
| 59 | 5.4552% | 6.7729% | -1.32 pp |
| 60 | 5.5304% | 6.8537% | -1.32 pp |
| 61 | 5.6125% | 6.9415% | -1.33 pp |
| 62 | 5.7022% | 7.0370% | -1.33 pp |
| 63 | 5.8005% | 7.1412% | -1.34 pp |
| 64 | 5.9084% | 7.2551% | -1.35 pp |
| 65 | 6.0272% | 7.3799% | -1.35 pp |
| 66 | 6.1586% | 7.5169% | -1.36 pp |
| 67 | 6.3042% | 7.6678% | -1.36 pp |
| 68 | 6.4662% | 7.8345% | -1.37 pp |
| 69 | 6.6474% | 8.0193% | -1.37 pp |
| 70 | 6.8508% | 8.2250% | -1.37 pp |
| 71 | 7.0804% | 8.4548% | -1.37 pp |
| 72 | 7.3413% | 8.7129% | -1.37 pp |
| 73 | 7.6397% | 9.0042% | -1.36 pp |
| 74 | 7.9836% | 9.3351% | -1.35 pp |
| 75 | 8.3837% | 9.7135% | -1.33 pp |
| 76 | 8.8423% | 10.1495% | -1.31 pp |
| 77 | 9.3729% | 10.6566% | -1.28 pp |
| 78 | 9.9935% | 11.2525% | -1.26 pp |
| 79 | 10.7287% | 11.9616% | -1.23 pp |
| 80 | 11.6128% | 12.8177% | -1.20 pp |
| 81 | 12.6955% | 13.8700% | -1.17 pp |
| 82 | 14.0512% | 15.1921% | -1.14 pp |
| 83 | 15.7970% | 16.8995% | -1.10 pp |
| 84 | 18.1280% | 19.1852% | -1.06 pp |
| 85 | 21.3952% | 22.3959% | -1.00 pp |
| 86 | 26.3008% | 27.2256% | -0.92 pp |
| 87 | 34.4831% | 35.2934% | -0.81 pp |
| 88 | 50.8575% | 51.4563% | -0.60 pp |
| 89 | 100.0000% | 100.0000% | +0.00 pp |
| 90 | 100.0000% | 100.0000% | +0.00 pp |
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 is the federal maximum lower than every province's?
Purely because of the missing floor. Ontario, Alberta and British Columbia all use the greater of 6.00% and the November yield, and since that yield has been below 6% for decades, they are permanently pinned at 6.00%. The federal rules use the yield itself.
A lower discount rate spreads the fund over more years, so the annual ceiling is tighter. On a $500,000 fund the practical effect is roughly $6,500 to $6,900 a year of withdrawal room, depending on age — money that is not gone, but is not available this year.
There is a second, less obvious difference. Ontario, Alberta and BC set the maximum as the greater of the formula amount and the prior year's investment earnings. The federal rules have no such alternative. A strong market year can lift a provincial ceiling; it can never lift a federal one.
How does federal 50% unlocking work?
Federal unlocking runs through a Restricted Life Income Fund (RLIF) rather than a plain LIF, and the conditions are stricter than Ontario's:
- You must be 55 or older. Ontario has no age condition beyond being eligible to open the LIF.
- It is one time only, where Ontario's resets with each qualifying transfer.
- It must be done within 60 days of the RLIF being established — the establishment date being when funds are first deposited.
- The 50% leaves the fund, so the first-year maximum still rests on the full pre-unlock balance.
Separately, federal small-amount unlocking is available from 55 where your total holdings across all federally locked-in accounts are at or under 50% of the YMPE — $37,300 in 2026.
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 the federal regime compare with the provinces?
| Federal | Ontario | Alberta | BC | |
|---|---|---|---|---|
| Maximum at 65 (age Jan 1) | 6.03% | 7.38% | 7.38% | 7.38% |
| Rate floored at 6% | No | Yes | Yes | Yes |
| Prior-year earnings alternative | No | Yes | Yes | Yes |
| Table reissued annually | Yes | No | No | No |
| One-time 50% unlocking | Via RLIF at 55+ | From the LIF | From the LIRA | None |
| First-year proration | Yes | Yes | No | No |
Which set applies to you depends on whether the original pension plan was federally or provincially regulated — not on where you live.
Frequently asked questions
What is the maximum withdrawal from a federal LIF in 2026?
The federal LIF maximum for 2026 is the formula C divided by F, using a reference rate of 3.49% for the first fifteen years and 6.00% thereafter. As a percentage of the January 1 balance that is 5.2096% at age 55 on January 1, 6.0272% at 65 and 7.0804% at 71, reaching 100% in the year you turn 90. Unlike the provincial tables it changes every year, because the rate has no 6% floor.
Why is the federal LIF maximum lower than Ontario's?
Because Ontario floors the reference rate at 6.00% and the federal rules do not. Ontario uses the greater of 6.00% and the November CANSIM V122487 bond yield, and that yield has been below 6% for decades, so Ontario is pinned at 6.00%. The federal rules under sections 20.1, 20.3 and 21.1 of the Pension Benefits Standards Regulations use the yield itself, 3.49% for 2026. On a $500,000 fund at age 65 that is roughly $6,760 a year less.
What is the federal LIF reference rate for 2026?
3.49%, being the November 2025 monthly average yield on Government of Canada marketable bonds with maturities over 10 years, CANSIM series V122487. It applies to the first fifteen years of the calculation, with 6.00% used thereafter. OSFI publishes a new table each January based on the preceding November's rate.
How does 50% unlocking work federally?
Federal unlocking runs through a Restricted Life Income Fund rather than a plain LIF. You must be 55 or older, it is one time only, and it must be done within 60 days of the RLIF being established. The 50% comes out of the fund itself, so the first-year maximum is still calculated on the balance before the unlocked amount leaves.
Can a strong market year raise the federal LIF maximum?
No. Ontario, Alberta and British Columbia set the maximum as the greater of the formula amount and the prior fiscal year's investment earnings, so a strong year can lift the ceiling. The federal rules have no such alternative — the formula amount stands on its own regardless of how the fund performed.
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.