Tax Tip #6 -pension income March 3, 2009

Pension-Income splitting (6) What is split pension income? If you received “eligible” pension income last year. It might be worthwhile to split as much as half of your pension with your spouse or common law partner in order to lower your taxes. Canada Pension is paid out to Canadian citizens that are at least 65 years old. “eligible” money includes: 1. Income from a Registered Pension Plan (RPP); 2. Annuities from a Registered Retirement Savings Plan (RRSP); 3. Payments from a Registered Retirement Income Fund (RRIF), and 4. The taxable portion of annuities from a superannuation or pension fund or plan. For individuals under the age of 65, qualifying income comprises money from pension plans and superannuation plans, including foreign pensions.