Withdrawing funds from your Registered Retirement Income Fund (RRIF) can have tax implications. This 2025 guide explains everything Canadian retirees and seniors need to know about how to report RRIF withdrawals on their personal income tax return.
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📘 What Is a RRIF?
A Registered Retirement Income Fund (RRIF) is a tax-deferred retirement account that converts your RRSP savings into income during retirement. You are required to withdraw a minimum amount each year after converting your RRSP into a RRIF, usually by the age of 71.
🧾 How Are RRIF Withdrawals Taxed?
RRIF withdrawals are fully taxable as regular income in the year you receive them. They are added to your total taxable income and taxed at your marginal rate.
- They do not qualify for special tax treatment like capital gains.
- Withholding tax may apply to amounts above the minimum required withdrawal.
- Taxes are not withheld on the minimum required amount unless requested.
📨 What Tax Slips Will You Receive?
You’ll receive a T4RIF slip from your financial institution reporting the amount of RRIF income withdrawn and the taxes withheld (if any).
- Box 16: RRIF income
- Box 22: Income tax deducted
🖊️ Where to Report RRIF Withdrawals on Your T1 Tax Return
You must report the RRIF income on:
- Line 11500 – Other pensions or superannuation
- Claim tax withheld on Line 43700 – Total income tax deducted
✅ Pension Income Amount Credit
If you’re age 65 or older, you can claim the Pension Income Amount (up to $2,000) for RRIF withdrawals. This helps reduce your overall tax burden.
💡 Tax Tips to Minimize RRIF Withdrawal Tax
- Split income with your spouse to reduce tax (Form T1032).
- Withdraw strategically to stay in a lower tax bracket.
- Use RRIF income to trigger tax credits for pension income.
- Delay withdrawals until age 72 if you don’t need the income immediately.
📊 Example Scenario
Linda, age 72, withdrew $12,000 from her RRIF in 2025. Her financial institution withheld tax on $4,000 of the withdrawal above the minimum. She receives a T4RIF showing:
- Box 16: $12,000
- Box 22: $1,200 tax withheld
She reports $12,000 on Line 11500 and $1,200 on Line 43700 of her return.
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📅 RRIF Minimum Withdrawal Rates (2025)
Minimum RRIF withdrawal rates vary by age. For example:
- Age 71 – 5.28%
- Age 72 – 5.40%
- Age 80 – 6.82%
Check CRA’s official table for the complete rate chart.
📝 Forms & Links
Disclaimer: This article is for general informational purposes only and does not constitute personal tax advice. Please consult a certified tax professional for tailored guidance.
