T4RIF – RRIF Withdrawals

When you start drawing income in retirement, your RRSP usually becomes a RRIF. Withdrawals are taxable and reported on the T4RIF Statement of Income.

At Optimize, we plan RRIF withdrawals to fit your overall financial strategy. Knowing what the T4RIF shows helps you make clear, confident retirement decisions.

The Foundation of RRIF Income Reporting

The T4RIF slip is issued each year you receive income from a RRIF. It tells the Canada Revenue Agency how much you withdrew, how much tax was withheld, and what portion qualifies for pension income splitting or credits.

Your T4RIF includes:

• Total RRIF income received during the year.

• Tax withheld at source, if any.

• Pension income amount, which may be eligible for the pension income credit or splitting with a spouse.

All RRIF income is taxable, just like RRSP withdrawals. But because RRIFs are designed for long-term income, they come with more flexibility and planning opportunities.

Why the T4RIF Matters in Your Financial Plan

Once you start drawing from a RRIF, this income becomes a key component of your retirement cash flow. The way it is taxed, timed, and combined with other income can influence everything from your net income to government benefit eligibility. This matters when you are:

• Planning when to start CPP or OAS benefits.

• Coordinating multiple sources of retirement income.

• Managing tax brackets to avoid excess taxation or benefit clawbacks.

• Looking to split eligible pension income with a spouse to reduce overall household tax.

Learn how to read a T4RIF form to better understand the details and terminology used throughout your return.

RRIF income must meet a minimum withdrawal schedule, which increases as you age. But beyond that minimum, you have flexibility. Whether you take more, delay other income, or supplement with TFSA or non-registered withdrawals, your decisions show up here.

Learn How to Read a T4RIF

Your T4RIF shows how RRIF withdrawals impact your taxes, benefits, and retirement income plan. It helps you track how much you're receiving, how it's taxed, and whether you're staying on track.

At Optimize, we focus on making retirement income purposeful and tax-efficient. This article explains key parts of the T4RIF to help you plan with clarity and control.

Identification and Basic Information

This section connects your RRIF income with your tax file and provides CRA with the necessary administrative details.

Payer’s name and address
Identifies the financial institution managing your RRIF and issuing the slip.

Recipient’s name and address
Matches the RRIF withdrawal to you personally.

RRIF contract number
Unique identifier for the specific RRIF account the income was drawn from.

Tax year
Indicates the calendar year in which the RRIF income was received and must be reported.

RRIF Income and Tax Withheld

This section shows how much income you received from your RRIF and whether any tax was withheld at source.

• Box 16 – Taxable amount
  The total amount withdrawn from your RRIF during the year. This is fully taxable and must be reported on Line 11500 of your T1 return.

• Box 20 – Income tax deducted
  If withholding tax was applied to your withdrawals, it will be shown here. However, minimum RRIF withdrawals do not require withholding, so this box may be blank.

Designated and Excess Amounts

Some RRIF payments may involve transfers or adjustments based on special circumstances.

• Box 22 – Excess amount
  If you withdrew more than required and it exceeded CRA limits, it may be classified as an excess amount and could be subject to penalties.

• Box 24 – Refund of premiums
  Applies in estate situations when RRIF assets are transferred tax-deferred to a surviving spouse or financially dependent child.

• Box 28 – Amount transferred to an RRSP, RRIF, or annuity
  If you directly transferred funds (e.g., from a deceased spouse’s RRIF), the amount is noted here and may be eligible for tax deferral.

• Box 37 – Commuted value
  If you collapsed a RRIF and moved it elsewhere, the full value will appear here.