Note that if the amounts you mention were in Canadian dollars, you'll need to convert to US$ to report them on your 1040 and 1116. Derive the exchange rate in effect at the time of receipt by using the CA dollar amount transmitted and the US dollar amount that was credited to your US bank account. Technically you should do that with the amount received *before* the banks' wire fees were deducted from it, but with numbers this large, the wire fee (~$16 for my bank) is too small to make a difference.
Unless there was something extremely unusual about your RRSP, it's a tax-deferred plan roughly analogous to a US 401(k), and withdrawals are fully taxable. Any amount withdrawn from it and taxed by Canada is also taxed by the US, so this means that *all* of the withdrawal from your RRSP is taxable income and must be reported in the US too. The IRS sorts out the foreign tax payment separately. So convert the full amount to US$, using the rate determined as described above, and report that. You could edit the 1040 form directly to put it in line 5b (5a too if you want, although it's superfluous), but it would be better to use the TT walk-through questions. There is actually a section specifically for RRSP withdrawals which I think is described earlier in this discussion. It covers more than just what goes into the income section.
Note that the flat 25% tax withholding is what Canada requires from non-residents who have RRSPs. Non-residents with only this type of Canadian income do not file a Canadian tax return, so there's nothing to match in that respect. In your case CA$25K is the foreign tax withheld; convert it to US$ the same way as above for reporting it to the IRS. When claiming a foreign tax credit (Form 1116), note that the IRS will only credit you the amount of tax you would have had to pay if it had been US income; this is called proportional taxation. The dialogs/forms calculate the fraction of your total income that was from (any) foreign sources, apply that fraction to the total tax that would be due if it were all simple US income, and then use the result as the limit on your foreign tax credit. If, like the vast majority of US filers, you pay less than 25% tax on your income, you will not get a credit for all of it. C'est la vie.
Other notes: you should receive a 2023 NR-4 from the Canadian firm that was the RRSP custodian. In principle they have until the end of March to issue it; we received both of ours before mid-February. Also, since the value of your RRSP was >US$10,000, I hope you have been reporting its existence each year to the US Treasury using the online FBAR. It should also have been reported on Form 8938 (sections II, III, and VI) with your tax returns once the RRSP value hit the threshold (different than FBAR's). If you haven't been, that's a totally separate issue and there are resources to find out how to rectify it now. Both of those are also used to report that it was closed during the tax year.
