Question

25 tim would like to know if there are maximum and minimum limits to withdrawals that he can make from the accounts that he owns. his agent tells him that there are statutory minimums that he must withdraw from his rrif and his lif. which of tims accounts also has a maximum withdrawal limit? a. registered retirement income fund (rrif) b. tax - free savings account (tfsa) c. life income fund (lif) d. registered retirement savings plan (rrsp)

Explanation:

To solve this, we analyze each account:

• RRIF: Has statutory minimum withdrawals but no maximum (you can withdraw more than the minimum, though the minimum is mandatory).
• TFSA: No maximum withdrawal limit (you can withdraw any amount from your TFSA, and contributions are limited but withdrawals don't have a maximum cap related to the account's structure for withdrawals).
• LIF: Has statutory minimums and also a maximum withdrawal limit (it's structured to provide income, with both minimum and maximum withdrawal constraints based on the plan's rules, often related to the value of the fund and actuarial factors).
• RRSP: Primarily for contributions and tax - deferred growth; withdrawals from an RRSP don't have a maximum limit in the same way (you can withdraw any amount, though there are tax implications).

So the account with a maximum withdrawal limit is the Life Income Fund (LIF).

Answer:

c. Life Income Fund (LIF)