Where do you live? | Alberta |
100,000
Your Taxable Income
Enter the taxable income amount from line 260 of your personal income tax return BEFORE the taxable portion of the commuted value. |
55
Current age
The age you plan on taking the commuted value. This is used to calcuate the amount you can transfer to a LIRA or LIF. |
Commuted value (before taxes)
A |
800,000
Commuted value
Enter the commuted value of your pension before any taxes. |
3,500
Monthly pension amount
The monthly pension you will receive from your Defined Benefit plan. |
Annual pension | B |
42,000
|
Present value factor | C |
10.4
Present value factor
This number is used to calculate the maximum transfer value. |
Maximum transfer value to LIF/LIRA (B times C) | D |
436,800
Maximum transfer value
The maximum that can be transferred on a tax-deferred basis to a LIRA or LIF. |
Taxable cash (A minus D) | E |
363,200
Taxable cash
The difference between the Commuted value and the Maximum transfer value. |
F |
50,000
RRSP contribution
If you have RRSP contribution room, you can deposit some of the taxable cash to your RRSP. |
Taxable amount (E minus F) | G |
313,200
|
Less taxes | H |
158,696
|
After-tax amount (G minus H) | I |
154,504
|
Commuted value (after taxes) (D plus I) | J |
591,304
|
RRSP contribution | K |
|
Commuted value & RRSP contribution (J plus K) | L |
|
Monthly pension amount |
3,500
|
Pension received at start or end of month? |
|
2.00%
|
25
|
5.00%
Rate of return
This rate is used to calculate the present value of the monthly pension payments. |
Lump sum (present value) of lifetime pension |
740,315
Lump sum (present value)
This is the present value of the monthly pension payments. |
Results | ||
Commuted value (after taxes) | ||
Lump sum (present value) of lifetime pension | ||
Assumptions
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The present value factor is based on age and is defined by the Canadian Income Tax Act.
Disclaimer
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The present value factor is based on age and is defined by the Canadian Income Tax Act.
Disclaimer