What is the maximum withdrawal from an Ontario LIF?
Section 6 of Schedule 1.1 to Regulation 909 under the Pension Benefits Act sets the maximum for a Post-2008 LIF as the greatest of three amounts:
- the investment earnings of the LIF in the previous fiscal year, including unrealized capital gains and losses;
- the formula amount, C ÷ F; and
- where the money came from another LIF or an LRIF and income is first paid in the following fiscal year, the combined prior-year earnings of both funds.
In most years the formula amount governs. The earnings alternative only bites after a strong market year — but when it does, it can lift your ceiling well above the table percentage. That alternative is one of the two things that make Ontario more generous than the federal rules.
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 Ontario LIF maximum withdrawal table
These percentages apply to the balance at the start of the fiscal year. They are unchanged since 2021 and, unless the November bond yield exceeds 6.00%, will not change next year either. Alberta and British Columbia use identical percentages.
| 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.
Can you unlock 50% of an Ontario LIF?
Yes. Within 60 days of money arriving in a Schedule 1.1 LIF from a pension plan or a LIRA, up to 50% may be withdrawn in cash or transferred to an RRSP or RRIF, using FSRA Form 5.2. Three details catch people out:
- It must be entirely one or the other. You cannot split part to cash and part to an RRSP.
- It resets with each qualifying transfer — it is not a once-per-lifetime right, unlike the federal and Alberta versions.
- The first-year maximum is calculated on the pre-unlock balance. The 50% leaves the fund after the ceiling is set, so your first-year room is based on the full amount transferred in. Most calculators get this wrong.
Taking the unlocked half in cash is a taxable event, withheld at the same 10/20/30 steps and added in full to that year's income. Transferring it to an RRSP or RRIF instead defers all of it.
Note that Ontario's Schedule 1.1 LIF has no temporary income option for owners under 65 — the 50% unlocking provision took its place. Several other provinces do offer temporary income, so do not carry that assumption across a border.
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 Ontario compare with the other jurisdictions?
Ontario, Alberta and British Columbia all floor the reference rate at 6%, so all three produce identical maximum percentages. The federal rules do not, which makes the federal ceiling materially tighter — roughly $6,760 a year less on a $500,000 fund at 65. The real differences between the three provinces are in access and unlocking, not in the table.
| Ontario | Alberta | 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 | 55 | 50 | 50 | No minimum |
| One-time 50% unlocking | From the LIF | From the LIRA | None | Via RLIF at 55+ |
| First-year proration | Yes | No | No | Yes |
Which set applies to you depends on the jurisdiction that regulated the original pension plan, not where you live now.
Frequently asked questions
What is the maximum withdrawal from an Ontario LIF in 2026?
The Ontario LIF maximum is the greater of the previous fiscal year's investment earnings and the formula C divided by F under section 6 of Schedule 1.1 to Regulation 909. Expressed 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. The percentages have been frozen since January 1, 2021 because the reference rate is floored at 6.00%.
Does an Ontario LIF have a minimum withdrawal as well?
Yes. The minimum is federal and identical for every RRIF and LIF in Canada, set by section 7308 of the Income Tax Regulations and applied to the balance at the start of the fiscal year. Below age 71 the factor is 1 divided by (90 minus your age on January 1); from 71 the prescribed table applies, starting at 5.28% and reaching 20.00% at 95. In the year the fund is entered into, the minimum is nil.
Can I unlock 50% of my Ontario LIF?
Yes. Within 60 days of money arriving in a Schedule 1.1 LIF from a pension plan or LIRA, up to 50% may be withdrawn in cash or transferred to an RRSP or RRIF using FSRA Form 5.2. It must be entirely one or the other, not split, and the option resets with each qualifying transfer rather than being once per lifetime. The first-year maximum is still calculated on the balance before the unlocked amount leaves.
Why does the Ontario LIF maximum percentage never change?
Because the interest rate inside the formula is the greater of 6.00% and the November CANSIM V122487 long-term Government of Canada bond yield. That yield has been below 6% for decades, so 6.00% always wins and the table has been frozen at the same values since January 1, 2021. The federal table, which has no such floor, is reissued by OSFI every January.
Does using my younger spouse's age increase my Ontario LIF maximum?
No. The one-time election to use a younger spouse's age lowers the mandatory minimum only. The LIF maximum is keyed to the owner reaching age 90 and is unaffected by the election. The election must be made before any payment has been made out of the fund and cannot be revisited later.
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.