Pension income splitting
If you are a couple, a very interesting strategy for your retirement disbursement is the possibility of pension income splitting.
Since 2007, it has been possible to split up to 50% of pension income with the spouse with the lower income.
The main incomes that can be split are:
– RRIF and LIF withdrawals can be split from the year the RRIF (or LIF) holder reaches age 65. Note that withdrawals coming directly from your RRSPs are not eligible for income splitting;
– Income from a retirement plan can be split before age 65 at the federal level only and at both levels of government after age 65
Each year, you and your spouse can decide to split up to 50% of taxable income from annuities and other pension income. This amount will be added to the income of the spouse with the lowest income and reduced in the calculation of the spouse with the higher income.
You have questions: firstname.lastname@example.org / 1-800-267-3800