The Department of Finance today announced that regulatory changes are now in effect allowing Canadians to take advantage of improvements to the administration of Life Income Funds (LIFs) that were proposed in the latest federal budget.

The changes enhance the flexibility to withdraw funds from LIFs through three provisions, which are now operational:

> individuals 55 or older with total holdings in federally-regulated locked-in funds of up to $22,450 will be able to wind up their accounts or convert to a tax-deferred savings vehicle with no maximum withdrawal limit, such as a RRIF or RRSP;

> LIF holders will also be entitled to a one-time conversion of up to 50% of their holdings into a tax-deferred savings vehicle with no maximum withdrawal limit; and

>those facing financial hardship will be entitled to withdraw up to $22,450 a year.

“Many people, such as seniors, pensioners and individuals facing financial hardship, will now have greater freedom to move their investments and use the money when they want, for what they want,” said Jim Flaherty, Minister of Finance. “These changes simply reflect the greater range of employment and lifestyle choices available in our fast-paced global economy.”