When taking money out of a RRIF, do you pay both federal and provincial taxes?
Withdrawals from a RRIF are fully taxable as income in the year withdrawn. When you withdraw more than the minimum withdrawal amount from your RRIF, you will also pay a withholding tax (which will be withheld by the financial institution and submitted to the government(s) on your behalf).
These previous questions may provide insight as you move forward:
- “How do withdrawals from a RRIF work?”
- “Does a RRIF have a maximum withdrawal amount?”
- “Why does the withholding tax on RRIF withdrawals get higher as I get older?”
- “Is the tax higher when a withdrawing from a RRIF or RRSP?”
The resources on GetSmarterAboutMoney.ca will help you build financial and investing knowledge as you move forward. You may also find the Canada Revenue Agency’s (CRA) RRIF webpage helpful. Speak with a registered representative for investment advice that fits your personal and financial situation.