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Pension splitting: special rules and planning opportunities

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Naomi Isner

There appears to be an error in one of the above examples:

“Now consider Amanda, who is 54 and drawing a pension from her employer’s plan. If she allocates at least $2,000 to her 57-year-old spouse, Jonathan, he is able to claim the $2,000 pension credit.”

I believe the author intended to make the spouse 67 vs. 57 as he would not be eligible for this credit unless he was 65 or older.

Thursday, Aug 3, 2017 at 8:40 am Reply

Lea Koiv

Life annuity income from a pension plan receives preferential tax treatment. For the spouse receiving the income, it is “qualified pension income”. and can be split at any age. The recipient can also claim the pension credit. For the spouse to whom the income is transferred, subparagraph 60.03(2)(b)(ii) (see deems the amount to be qualified pension income as well. Thus, the pension credit is available, even to a transferor who is not age 65.

Friday, Aug 4, 2017 at 9:02 am