Did you know you can save thousands of dollars through Canadian pension income splitting and we can show you how to do that? With the passing of the Canadian Federal Budget, we can expect to save thousands of dollars in taxes.
With the passing of the federal Budget, we can expect to enjoy thousands of dollars of annual tax savings, by lowering taxes paid, and increasing tax credits and government benefits. Retirement income splitting allows you and your spouse (including common law) to lower your total taxes throughout retirement.
Beginning this year, any Canadian resident with eligible income can allocate up to 50% of that income to their spouse. If you are under 65 years of age, eligible income includes employer pension income, as well as some death benefits. If you are 65 years of age or older, eligible income also includes lifetime income paid from Registered Retirement Income Fund (RRIF), Life Income Fund (LIF) and Locked in Retirement Income Fund (LRIF), and Deferred Profit Sharing Plan (DPSP).