Ask Fred — Answers

Topic: Pension Income Splitting

My husband is receiving Nortel Pension (he is also still working at the present time with another high tech, hence, he is in 50% tax bracket) I wonder if he could split his Nortel Pension with me (I am not making much money).

Answer:

I see that you have reserved seating at our February presentation. From the information you provided it certainly looks like John's Nortel pension would qualify as "Eligible Pension Income" for purposes of splitting.
 
The general rule for people under the age of 65 is as follows;
 
If you are under the age of 65, income eligible for the Pension Income Tax Credit may be split with your spouse and is basically limited to; Life Annuity Payments from a Superannuation or Pension Fund or Plan. In general income reported in Box 16 of T4A slip.
 
Thanks for the inquiry.