Convert a RRIF to a LIF?

Q – Is a LIF/LRIF something we should be thinking about transferring our RRIFs into? Also, if we move to another province where our offspring live is there any real problem getting our accounts transferred and withdrawals directed to a new area, or is it just local managers not wanting to lose part of their work portfolio? – G.S., Alberta

A – You can’t switch from a RRIF to a LIF/LRIF, nor would you want to. LIFs and LRIFs are only for locked-in accounts and have more restrictions on them than a RRIF does, as we’ve been discussing in these columns.

As for moving, accounts are transferred all the time in this country and the process is usually a routine one. However, to keep things simple, it’s a good idea to transfer the account within the same company, if possible. If it is moved to a different company, it may be treated as a “new” RRIF which could have an effect on the withdrawals. Check the details carefully at both ends of the transaction before proceeding. – G.P.