How does MRA apply pension income splitting between spouses?
Where to find it: TIME MACHINE results → Detailed Cash Flow → Taxes
TIME MACHINE calculates supported pension-income splitting between spouses when applicable to the entered income and ages. For a pension from an employer or an annuity, select the correct source and owner so the calculation can apply the supported treatment. Withdrawals from RRIFs and LIFs are also considered for pension income splitting. Withdrawals from other eligible registered retirement accounts from age 65 are also considered eligible for pension splitting in the TIME MACHINE, and it will warn you a partial conversion was applied.
The transfer affects taxable-income allocation to each spouse. Open the detailed tax report to compare income before and after the splitting calculation and each spouse’s taxes.