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
• 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 (RRIF), including life income fund payments
  • registered retirement savings plan (RRSP) annuity payments
  • certain qualifying amounts distributed from a retirement compensation arrangement

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

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 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 a deduction at line 25600 of your return
• income from a United States individual retirement account (IRA)
• amounts from a RRIF included on line 11500 of your return and transferred to an RRSP, another RRIF or an annuity

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 the transferring spouse's or common-law partner's eligible pension income received in the year if all of the following conditions are met:

• You and your spouse or common-law partner were not living separate and apart from each other, because of a breakdown in your marriage or common-law partnership, at the end of the tax year and for a period of 90 days or more beginning in the tax year (see the note below).
• You and your spouse or common-law partner were residents of Canada on December 31 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 December 31 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 65 years of age or older and received certain qualifying amounts distributed from a retirement compensation arrangement (box 17 of your T4A-RCA slips).

Forms and publications

• Income Tax Package
• Form T1032, Joint Election to Split Pension Income

Related topics

• Line 11500 – Other pensions and superannuation
• Line 12900 – Registered retirement savings plan (RRSP) income
• Line 31400 – Pension income amount