The financial institution that administers your RRIF account will send you a T4RIF – Statement of RRIF Income information slip after the calendar year end for the year your RRIF withdrawal occurred. On the T4RIF slip, in Box 16 – Taxable Amounts, will be the full amount withdrawn from your RRIF account. On the same T4RIF slip, in Box 28 – Income Tax Deducted, the total withholding tax deducted from your RRIF withdrawal will be stated. Both of these numbers are entered in your income tax return. The withdrawal amount will increase your taxable income and the withholding tax paid will be a credit as income tax paid.
Note: Careful consideration should be given to the secondary factors that an RRIF withdrawal may trigger. For instance, the resulting increased taxable income may negatively impact your Old Age Security and Guaranteed Income Supplement payments. The increase in taxable income may reduce benefits you receive from the province such as pharmacy and health care costs subsidies, which tend to be income based. A withdrawal from a RRIF may also negatively impact government transfer payments such as Family Allowance and GST/HST refund payments.