LLQP Segregated Funds & Annuities · Component 2.3 · 30% of the exam
The pension income tax credit and pension income splitting apply to:
- Eligible pension income, including RPP annuities at any age and RRIF or annuity income from 65
- BAll investment income, including interest and dividends, once the client turns 65 and has retired from employment
- CTFSA withdrawals taken after age 65, since they are treated as retirement income
- DCapital gains realized after retirement, since they replace employment income
Correct answer: A) Eligible pension income, including RPP annuities at any age and RRIF or annuity income from 65
Eligible pension income rules favour structured retirement income. The age-65 threshold applies to RRIF and annuity income.
Why the other options are wrong
- BInterest and dividends do not qualify.
- CTFSA withdrawals are not income.
- DGains are not pension income.
Exam tip
Pension credit/splitting: RPP any age; RRIF and annuity income at 65+.
Common mistake
Missing the pension income credit for a 65-year-old with no RRIF income.
What this tests
CISRO competency component 2.3 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 2
- A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:
- A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:
- Segregated fund guarantees are most valuable relative to their cost when:
- A segregated fund's annual statement reports:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.