How to issue T4RIF slips

We explain below how to issue slips in various situations.

Situation 1: The spouse or common-law partner is designated as the sole beneficiary of the RRIF and the following conditions apply:

• you are making a direct transfer of the entire eligible amount of the designated benefit under paragraph 60(l) to the spouse or common-law partner's RRSP or RRIF, or to an issuer to buy an eligible annuity for the spouse or common-law partner
• all the RRIF property is distributed before the end of the exempt period

In this case, issue a T4RIF slip in the name of the spouse or common-law partner for the year you complete the transfer. Enter the total amount of the designated benefit in box 16. Calculate the amount of the designated benefit that is eligible for transfer using the chart entitled Calculating the eligible amount of a designated benefit, and enter that amount in box 24. This amount can include income earned in the RRIF after the date of death to the date of transfer, since the amount is paid before the end of the exempt period. Do not issue any slip in the name of the deceased.

However, if Situation 1 does not apply, report the fair market value (FMV) of the RRIF at the time of death in box 18 of a T4RIF slip issued in the name of the deceased annuitant for the year of death. Circumstances will sometimes arise where that FMV will be greater than the totals of all the payments made from the RRIF after the annuitant's death. If this occurs, you have to fill out Form RC249, Post-Death Decline in the Value of a RRIF, an Unmatured RRSP and Post-Death Increase or Decline in the Value of a PRPP.

You fill out Form RC249 for the year in which you make the final payment from the RRIF, and you must complete it no later than the last day of February following the calendar year in which you make that final payment. You must send one copy of the completed form to the deceased annuitant's legal representative and one copy to your tax centre.

For more information on post-death decline in the value of a RRIF, see Information Sheet RC4178, Death of an RRIF Annuitant, PRPP Member, or ALDA Annuitant.

Situation 2: The spouse or common-law partner is designated as the sole beneficiary of the RRIF, but the conditions stated in situation 1 do not apply

For the fair market value (FMV) at date of death, in all cases, report the fair market value (FMV) in box 18 of a T4RIF slip issued in the name of the deceased annuitant for the year of death. This is income that can be considered as a designated benefit.

For income earned from the date of death to the end of the exempt period, in all cases, report income in box 16 of a T4RIF slip issued in the name of the spouse or common-law partner for the year in which the benefit is paid. This is income that can be considered as a designated benefit.

For income earned after the end of the exempt period, the following applies:

If the income is from a depositary RRIF, report income on a T5 slip issued in the name of the spouse or common-law partner for the year in which the income is credited or added to the deposit. For information on how and when to issue T5 slips, see Guide T4015, T5 Guide – Return of Investment Income.

If the income is from a trusteed RRIF, report as follows:

• Report the RRIF benefit in boxes 22 and 36 (since it is a tax-paid amount) of a T4RIF slip issued in the name of the spouse or common-law partner. This is the income earned or realized by the trust in a year that is paid to the spouse or common-law partner in that year
• If the income is not a RRIF benefit, see Tax-paid amount and after-tax amount from a RRIF. This is the income earned or realized by the trust in a year that is not paid to the spouse or common-law partner in that year. The trust is liable for the tax on this income

If the income is from an insured RRIF, report income in box 16 of a T4RIF slip issued in the name of the spouse or common-law partner for the year in which the benefit is paid.

For more information on the tax-paid amount, see Tax-paid amount and after-tax amount from a RRIF.

For more information on post-death decline in the value of a RRIF, see Information Sheet RC4178, Death of an RRIF Annuitant or a PRPP Member, or ALDA Annuitant.

Situation 3: All other situations

In all other situations, the treatment is similar. If there is a designated beneficiary in the RRIF contract, make the payout to the designated beneficiary. If not, make the payout to the estate.

For the fair market value at date of death, in all cases, report the fair market value (FMV) in box 18 of a T4RIF slip issued in the name of the deceased annuitant for the year of death. This is income that can be considered as a designated benefit if paid to a qualifying survivor.

For income earned from the date of death to the end of the exempt period, in all cases, report income in box 22 of a T4RIF slip issued in the name of the beneficiary for the year in which the benefit is paid. This is income that can be considered as a designated benefit if paid to a qualifying survivor.

When amounts from a deceased annuitant's RRIF are paid to the annuitant's estate and a qualifying survivor is a beneficiary of the estate, the deceased annuitant's legal representative and the qualifying survivor can jointly file Form T1090, Joint Designation on the Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant, to designate all or part of the amounts the annuitant's estate received from the RRIF as having been received by the qualifying survivor as a designated benefit.

For income earned after the end of the exempt period, the following applies:

If the income is from a depositary RRIF, report income on a T5 slip issued in the name of the beneficiary for the year in which the income is credited or added to the deposit. For information on how and when to issue T5 slips, see Guide T4015, T5 Guide – Return of Investment Income.

If the income if from a trusteed RRIF, report as follows:

• Report the RRIF benefit in box 22 and box 36 (since it is a tax-paid amount) of a T4RIF slip issued in the name of the beneficiary. This is the income earned or realized by the trust in a year that is paid to the beneficiary in the year
• If the income is not a RRIF benefit, see Tax-paid amount and after-tax amount from a RRIF. This is the income earned or realized by the trust in a year that is not paid to the beneficiary in that year. The trust is liable for the tax on this income

For more information on the tax-paid amount, see Tax-paid amount and after-tax amount from a RRIF.

If the income is from an insured RRIF, report income in box 22 of a T4RIF slip issued in the name of the beneficiary for the year in which the benefit is paid. This is income that can be considered as a designated benefit if paid to a qualifying survivor.

When amounts from a deceased annuitant's RRIF are paid to the annuitant's estate and a qualifying survivor is a beneficiary of the estate, the deceased annuitant's legal representative and the qualifying survivor can jointly file Form T1090, Joint Designation on the Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant to designate all or part of the amounts the annuitant's estate received from the RRIF as having been received by the qualifying survivor as a designated benefit.

Forms and publications

• Guide T4015, T5 Guide - Return of Investment Income
• Information Sheet RC4178, Death of a RRIF Annuitant, PRPP Member or ALDA Annuitant
• Form RC249, Post-Death Decline in the Value of a RRIF, an Unmatured RRSP and Post-Death Increase or Decline in Value of an PRPP
• Form T1090, Joint Designation on the Death of a RRIF Annuitant, PRPP Member or ALDA Annuitant