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New Member
posted Oct 30, 2019 6:37:22 AM

Your website says"If you are the recipient of the pension and are 65 or older, you may split income from your RRSP, .." This is incorrect and a serious error.

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1 Best answer
New Member
Oct 30, 2019 6:37:23 AM

From Canada.ca:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/pension-income-splitting/eli...

Eligible pension income
What is eligible pension income?

Eligible pension income is generally the total of the following amounts received by the transferring spouse or common-law partner in the year (these amounts also qualify for the pension income amount:(

  • the taxable part of life annuity payments from a superannuation or pension fund or plan; and
  • if they are received as a result of the death of a spouse or common-law partner, or if the transferring spouse or common-law partner is 65 years of age or older at the end of the year:
    • annuity and registered retirement income fund (including life income fund) payments;
    • registered retirement savings plan (RRSP) annuity payments; and
    • certain qualifying amounts distributed from a retirement compensation arrangement.

14 Replies
New Member
Oct 30, 2019 6:37:23 AM

From Canada.ca:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/pension-income-splitting/eli...

Eligible pension income
What is eligible pension income?

Eligible pension income is generally the total of the following amounts received by the transferring spouse or common-law partner in the year (these amounts also qualify for the pension income amount:(

  • the taxable part of life annuity payments from a superannuation or pension fund or plan; and
  • if they are received as a result of the death of a spouse or common-law partner, or if the transferring spouse or common-law partner is 65 years of age or older at the end of the year:
    • annuity and registered retirement income fund (including life income fund) payments;
    • registered retirement savings plan (RRSP) annuity payments; and
    • certain qualifying amounts distributed from a retirement compensation arrangement.

New Member
Oct 30, 2019 6:37:25 AM

Unresponsive answer.  Please read the original question.

New Member
Oct 30, 2019 6:37:26 AM

There was no question.

New Member
Oct 30, 2019 6:37:28 AM

How ever as you can see, income from an rrsp is eligible for pension splitting.

New Member
Oct 30, 2019 6:37:29 AM

Only if RRSP is converted to an annuity.

New Member
Oct 30, 2019 6:37:30 AM

You mean like on the quote I included?  

New Member
Oct 30, 2019 6:37:32 AM

You are missing the point. Your quote is from the taxman.  The original quote - which is misleading - is from Turbotax.  There is a multitude of ways for an RRSP to generate income e.g. dividends from stocks.  Annuities are actually mentioned separately later in the Turbotax article.

New Member
Oct 30, 2019 6:37:33 AM

And yet.. 😄

New Member
Oct 30, 2019 6:37:34 AM

That is too cryptic for me.  Please read https://turbotax.intuit.ca/tips/understanding-pension-income-splitting-for-seniors-5521 and tell me if you agree with what Turbotax says regarding RRSPs and pension splitting.

New Member
Oct 30, 2019 6:37:36 AM

Gee it wasn't cryptic to me.  I read the link you posted and am fully comfortable with it.  You are making much ado about nothing.

New Member
Oct 30, 2019 6:37:37 AM

Jeffrey you are being very tolerant.  And polite.  This guy is just looking to be a dirt disturber for some reason.

New Member
Oct 30, 2019 6:37:39 AM

Now now Stan...he is entitled to his opinion 🙂

New Member
Oct 30, 2019 6:37:40 AM

OK gentlemen.  Go ahead and follow the advice from Turbotax.  Withdraw monies from your RRSPs, split the income with your significant other and wait for the CRA to come calling.

New Member
Oct 30, 2019 6:37:41 AM

Have a good day Wislon 🙂