Comments on: What Is Eligible Pension Income?

By: labo

labo — Fri, 10 Feb 2012 21:16:28 +0000

I am a Canadian and I will be 60 May 2012. If I cash in 100K from an American IRA account, The American government will take 30% tax and I will be able to transfer the remainder to an account in Canada. My Question is: can I split the 100K with my wife. If not, is there anything I can do to defer claiming the entire amount in the same year.

Thanks

By: Tax Guy

Tax Guy — Sun, 29 Jan 2012 14:25:46 +0000

R. Ryan
Only if the annuitant is over age 65.

By: R. Ryan

R. Ryan — Sun, 29 Jan 2012 03:22:08 +0000

Is money received as RIF income payments eligible for income splitting?

By: Tax Guy

Tax Guy — Mon, 23 Jan 2012 19:02:49 +0000

No. He must be over the age of 65 and be receiving eligible pension income. Disability and CPP is not considered eligible pension income.

By: Tina

Tina — Mon, 23 Jan 2012 17:38:51 +0000

Hi, I was wondering if my spouse is eligible for the Pension Tax credit. He is under 65 and his only source of income is a Disability Canada Pension Plan, Is he eligible for this tax credit?

By: Tax Guy

Tax Guy — Sun, 13 Mar 2011 19:52:24 +0000

Unfortunately a lump-sum payment does not qualify as pension income for the purposes of the pension income tax credit. Therefore you cannot split this income.

By: Allaudin Keshani

Allaudin Keshani — Sun, 13 Mar 2011 11:38:02 +0000

In year 2000, following a merger, my employer offered me severance package and I elected to take defined pension benifit under locked in RRSP. I am planning to draw money from my RRSP in December, 2011 when I turn 71 in October.
In the interim, the pension plan is partially wound up and I am offered an additional lump sum that I have to take as income. I am left with very little RRSP room.
My wife is 69 and not working.
Would the lump sum that I receive from pension plan qualify for income splitting?

By: Tax Guy

Tax Guy — Sun, 06 Mar 2011 22:17:21 +0000

Yes. The pension will be used to purchase a registered annuity or moved into a locked in retirement account. The payment from the locked in retirement account or the annuity would qualify for pension income splitting.

By: Meghan

Meghan — Sun, 06 Mar 2011 20:27:36 +0000

Can you clarify for me please? My father has a defined contribution plan at work and is planning to retired not long after he turns 65. Will he be able to split the income from this plan with my mother? (She gets a small CPP and will start to receive OAS this year….) Or is he only able to split this income if he converts it into an annuity?
Thanks,
Meghan

By: Tax Guy

Tax Guy — Mon, 14 Feb 2011 23:39:36 +0000

Geoff,
Yes. RPP income from a defined benefit pension plan can be split with your spouse if you are under age 65.