Eligible pension income

What is eligible pension income?

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

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

For a more detailed list of eligible pension and annuity income, see the charts for line 314, Pension income amount:

• Eligible pension and annuity income (less than 65 years of age); or
• Eligible pension and annuity income (65 years of age or older).

Pension income that is not eligible

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

• old age security payments;
• Canada Pension Plan, Quebec Pension Plan;
• any foreign source pension income that is tax-free in Canada because of a tax treaty that entitles you to claim a deduction at line 256;
• income from a United States individual retirement account (IRA); or
• amounts from a RRIF included on line 115 and transferred to an RRSP, another RRIF or an annuity.

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

• you are married or in a common-law partnership with each other in the year and were not, because of a breakdown in your marriage or common-law partnership, living separate and apart from each other at the end of the year and for a period of 90 days or more beginning in the year (see the note below); and
• you were both residents of Canada on December 31 of the year; or
  • if deceased in the year, resident in Canada on the date of death; or
  • if bankrupt in the year, resident in Canada on December 31 of the year in which 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 65 years of age or older and received certain qualifying amounts distributed from a retirement compensation arangement (Box 17 of your T4A-RCA slips).

Forms and publications

• General Income Tax and Benefit Package – Guide, Return, and Schedules
• Form T1032, Joint Election to Split Pension Income

Related topics

• Line 115 – Other pensions or superannuation
• Line 129 – RRSP income
• Line 314 – Pension income amount

Date modified:

2017-01-03