Receiving income from a RRIF

Minimum amount from a RRIF

Starting in the year after the year you establish a RRIF, you have to be paid a yearly minimum amount. The payout period under your RRIF is for your entire life. Your carrier calculates the minimum amount based on your age at the beginning of each year. However, you can elect to have the payment based on your spouse or common-law partner's age. You must select this option when filling out the original RRIF application form. Once you make this election, you cannot change it. If you want more information, contact your carrier.

You can withdraw more, but not less than the minimum. The excess amount withdrawn cannot be applied as part of the minimum for the next year.

Amounts deemed received on deregistration of a RRIF

If in 2011 your RRIF was changed and it no longer satisfies the rules under which it was registered, it is no longer a RRIF. It is now an amended plan or fund. In such a case, we consider you to have received, in 2011, an amount that equals the fair market value of all the property the plan or fund held at the time it ceased being a RRIF.

Note
If the RRIF from which you receive excess amounts in 2011 is a spousal or common-law partner RRIF, your spouse or common-law partner may have to include in income all or part of the amount received. For more information, see Withdrawing from spousal or common-law partner RRSPs.

Other income and deductions from a RRIF

You may have to include other RRIF amounts in your income, or you may be able to deduct other amounts for 2011. This applies if, in 2011, your RRIF trust acquires or disposes of a non-qualified investment. It also applies if trust property was used as security for a loan, sold for an amount less than its fair market value, or the trust acquired property for an amount more than its fair market value. If the amount in box 22 of your T4RIF slip appears in brackets (negative amount,) claim it on line 232 of your return.

If you receive funds from a RRIF due to the death of a spouse or common-law partner, or if you were 65 or older on December 31 of the tax year in which you received the funds, report these funds on line 115 of your return.

• If these funds are transferred to your RRSP, complete and submit a Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, and deduct the amount on line 208 of your return.
  
  
• If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 232 of your return.

If these funds were not received due to the death of a spouse or common-law partner, or if you were not 65 or older on December 31 of the tax year in which you received the funds, report these funds on line 130 of your return.

• If these funds are transferred to your RRSP, complete and submit a Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, and deduct the amount on line 208 of your return.
• If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 232 of your return.

Note
You can claim the pension income amount when you receive RRIF income if you were 65 or older on December 31 of the year or if you receive the RRIF income due to the death of a spouse or common-law partner.

Forms and publications

• Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities
• Guide T4040, RRSPs and Other Registered Plans for Retirement
• Information sheet RC4177, Death of an RRSP Annuitant
• Information sheet RC4178, Death of an RRIF Annuitant
• Form T1090, Death of a RRIF Annuitant - Designated Benefit for year 20__

Related Topics

• Death of a RRIF annuitant