Life Income Fund (LIF)
I retired last year in July 2016 and opened a LIF account (transferred from LIRA). The Financial Institution issued a T4RIF 2016 with the amounts populated the same on boxes 16 (Taxable amount) and 24 (Excess amount).
Do I need to populate these amounts to my income tax return, as I didnt receive any annuities in 2016. Appreciate if I can get guidance regarding this. Thanks.
You have me confused. You say you didn't receive any income from the LIF in 2016?
But the amount in box 16 should be the taxable amount you were paid out of the LIF. You report it on line 115 of your tax return if you were 65 or older at the end of 2016, or to line 130 if you were under 65.
The box 24 excess amount is the amount in excess of the LIF minimum (which depends on your age). It is for info only as it is included in box 16. I would expect it to be some amount less than the amount in box 16.
Why do you say you didn't receive any "annuities"? Did you purchase an annuity with a portion of your LIRA?
I didn't get any income on my LIF in 2016, only got it (based on the government's formula as per my age) at the end of Jan. 2017. I took my lump sum pension in 2016 and opened a LIRA account and within 90 days, transferred the amount 50% to LIF account and the other 50% to my regular RRSP. However, if I put the amounts in Box 16 to my income tax return, it seemed that I had to pay all the taxes in advance which doesnt make sense. Thanks for your input.
Then I'd suggest you contact the issuer of the T4RIF and ask them why the slip was issued when you had no income paid out of the LIF in 2016. Is it possible the payment you got at the end of January was attributed to 2016?
Probably the case as they need to know the closing balance at Dec 31, 2016 and paid it in Jan.
Originally Posted by OnlyMyOpinion
I did the same thing in December.
I transferred my LIRA in total to a LIF.
Within 60 days I deregistered 50% and put it in a RIF.
Only taxable was the amount taken out of the RIF in December to take advantage of the tax credit for seniors.