123 – Retirement income transferred by your spouse

If your spouse on December 31, 2011 (This link will open a new window), received eligible retirement income during the year, you and your spouse can jointly decide to include up to 50% of your spouse’s eligible retirement income in the calculation of your income, provided you were both resident in Canada at the end of 2011. You must include the transferred amount on line 123 of your return, and your spouse can deduct the amount on line 250 of his or her return. To make the transfer, your spouse must complete Schedule Q and enclose it with his or her return.

If you agree on such a transfer, your spouse must allocate to you the Québec income tax withheld from the eligible retirement income, in the same proportion as the retirement income is transferred.

Eligible retirement income

If the spouse transferring his or her income is 65 or older, eligible retirement income includes the income reported on line 122.

If the spouse transferring his or her income is under 65, eligible retirement income includes the income reported on line 122 as

• life annuity payments under a pension plan or a pension fund; 
• payments received further to the death of a spouse from a registered retirement savings plan (RRSP), a deferred profit-sharing plan (DPSP), a registered retirement income fund (RRIF) or an annuity.

The spouse transferring income was resident in Canada, outside Québec

If the spouse transferring his or her income was resident in Canada, outside Québec, the amount deducted in his or her federal return must be included in the income of the spouse to whom the amount is being transferred.

Important

The amount on line 123 may entitle you to an amount for retirement income. For more information, see the instructions for line 361.