Your investing questions, our clear answers.

Our response:

Certain types of income may be eligible for income splitting, depending on the source and your age. Generally this can only be done if you are over the age of 65. Income from Registered Retirement Income Funds (RRIFs) and some other sources of pension income qualify. Only 50% of eligible pension income can be transferred to a qualifying spouse or common-law partner.

The Canada Revenue Agency (CRA) has information on pension income splitting. Speak to your financial advisor to learn more about pension income splitting and to determine whether you qualify.