Income Splitting When Some Income is from an IRA.

According to CRA, one cannot income-split IRA proceeds (sadly).  I cannot find a way to tell TT that my foreign (US) pension is an IRA. This year, I can get around the issue by not splitting, but in a couple of years, I may be receiving funds from the IRA account, and RRSPs (RIFFs).
Have I missed something?


2 people found this helpful

To work around this you would have to report the IRA proceeds as Foreign Income, but not Pension.
(it would be treated as an Annuity from a Tax Treaty perspective, which in fact is the same treatment as a pension)
That way, IRA money will not be loaded into line 115 of your income.

The potential downside is that your credits would not include the $2000 Pension amount
derived from the IRA. However, your RIF income recorded fromT4A would create the $2000
Pension Credit.

You might want to trial this in TT 2012 with a test file that you don't send in
Was this answer helpful? Yes No
Default user avatars original
3 additional answers

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community