Is pension income earned income?

Gena Katz, a chartered accountant and principal with Ernst and Young, has the answer.

Gena Katz 3 July, 2003 | 1:00PM
Dear Expert:

Can a person retired at 60 years of age still contribute 18% of their pension income into their RRSP?

Expert Answer:

The fact that an individual is retired and age 60 does not preclude the ability to make RRSP contributions. However, the annual contribution limit is based on the prior year's earned income and earned income does not include pension benefits, including CPP/QPP and OAS benefits, or retiring allowances.

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Gena Katz

Gena Katz