Can I open/start a rif this year for $2000 and withdraw the same amount later this year and would this be tax free for 2015 tax year or not until 2016 tax year?

[Delphision · Accepted solution]

Per CRA:

A registered retirement income fund (RRIF) is an arrangement between you and a carrier (an insurance company, a trust company or a bank) that we register. You transfer property to the carrier from an RRSP, a PRPP, an RPP, an SPP, or from another RRIF, and the carrier makes payments to you.

The minimum amount must be paid to you in the year following the year the RRIF is entered into. Earnings in a RRIF are tax-free and amounts paid out of a RRIF are taxable on receipt.

You can have more than one RRIF and you can have self-directed RRIFs. The rules that apply to self-directed RRIFs are generally the same as those for RRSPs. For more information, see Self-directed RRSPs.

So interest earned by the RIFF is not taxable, but the RIFF itself is taxable.

[morcowan]

It did not answer the specific question: ie. Can the $2000 be withdrawn taxfree the same year it is deposited?

[fuzzy]

 If you want to enter into a RRIF in 2015 and withdraw an amount from this RRIF in 2015, it will be reported on your 2015 return.  You do not have to wait until 2016 to withdraw amounts.  As Delphision correctly noted, all amounts received from a RRIF are taxable.  However, if you are 65 or older, the amounts received from the RRIF are eligible for the pension income amount (max $2,000), which is a non refundable tax credit.