Eligible pension income - Canada.ca (2024)

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

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

For a more detailed list of eligible pension and annuity income, see the following charts:

• Eligible Pension and Annuity Income (less than 65 years of age)
• Eligible Pension and Annuity Income (65 years of age or older)

  See Also

  Tax considerations for Canadian snowbirdsCanadian Pension Plan for U.S. Residents – Taxes and What You Need to Know – AKIF CPASocial Security, CPP and OAS: What happens when you have worked on both sides of the borderTax Efficient Retirement Withdrawal Strategies in Canada

Pension income that is not eligible

The following amounts received by the transferring spouse or common-law partner are not eligible for pension incomesplitting:

• old age security payments
• Canada Pension Plan and Quebec Pension Plan
• any foreign source pension income that is tax-free in Canada because of a tax treaty that allows you to claim adeduction at line25600of your return
• income from a UnitedStates individual retirement account(IRA)
• amounts from aRRIF included on line11500of your return and transferred to anRRSP, anotherRRIF or anannuity

Can you elect to split your pension income?

The transferring spouse or common-law partner and the receiving spouse or common-law partner can elect to split thetransferring spouse's or common-law partner'seligible pension income received in the year if all of the following conditions aremet:

• You and your spouse or common-law partner were not living separate and apart from each other, because of abreakdown in your marriage or common-law partnership, at the end of the tax year and for a period of 90days ormore beginning in the tax year (see the note below).
• You and your spouse or common-law partner were residents of Canada on December31 of the year, or:
  
  • if deceased in the year, resident in Canada on the date of death.
  • if bankrupt in the year, resident in Canada on December31 of the year that the tax year (pre- or post-bankruptcy)ends.
• You received pension income in the year that qualifies for the pension income amount or you were 65years of age orolder and received certain qualifying amounts distributed from a retirement compensation arrangement (box17 of your T4A-RCA slips).

Forms and publications

• Income Tax Package
• FormT1032, Joint Election to Split PensionIncome

Related topics

• Line11500 – Other pensions and superannuation
• Line12900 – Registered retirement savings plan (RRSP)income
• Line31400 – Pension incomeamount