RRSP/RRIF Withdrawals as Income

Hi, probably wrong place to post, if so sorry.

I am doing Retirement planning and all I need to know is the following please?

When I withdraw from my RRSP or RRIF is that TOTAL amount counted as income on yearly Tax Form or is it the NET amount after withholding has been applied?

IE total 15,000 withdrawn 3,000 withholding tax leaves net 12,000.

Is it the 15K or the 12K that is entered as income and to be added to other sources?

Thank you in advance

2168

Level 2

Jun 4, 2024 7:24:34 AM

The gross amount that you withdraw from your RRSP is included in your income for the year.

Your bank is mandated to withhold tax on RRSP withdrawals by Canada Revenue Agency (CRA), and the withholding rates vary according to the amount of the withdrawal. The tax that was withheld may not always be enough to account for the tax you owe at your tax bracket. You may have to pay more tax on the withdrawal when you include the withdrawal on your income tax and benefit return for that year.

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RRSP/RRIF Withdrawals as Income