FAQ: Is Income Splitting Automatic on the Platform?

Yes, the platform automatically splits defined benefit pension income as well as RRIF/LIF income post 65, and it will do so if it will help decrease taxes for the household.

How to See if There is Income Splitting in Your Plan

You can find the amount of income that the platform is splitting by going to Planning > Projections > Table, opening the "Taxable Income" column using the ">" arrow and then scrolling to the right to find the income splitting column.

A negative amount in the income splitting column is when you're splitting income with a partner. A positive amount in the income splitting column is when your partner is splitting income with you.

How to Turn Off Automatic Income Splitting:

If you'd like, you can turn off income splitting to see the benefit it provides within your plan. Go to the AI Strategies and filter on "Tax Planning" you will see the option to disable income splitting.

Evaluating RRIF/LIF Conversion Age:

When the platform evaluates RRSP/LIRA to RRIF/LIF conversion age it includes this income splitting opportunity automatically, this is often why a certain conversion age is "top" in the AI Strategy table.