Alberta |
100,000
|
55
|
Commuted value (before taxes)
A |
A
800,000
|
3,500
|
Annual pension | B |
B
42,000
|
Present value factor | C |
C
10.4
|
Maximum transfer value to LIF/LIRA (B times C) | D |
D
436,800
|
Taxable cash (A minus D) | E |
E
363,200
|
F |
F
50,000
|
Taxable amount (E minus F) | G |
G
313,200
|
Less taxes | H |
H
158,696
|
After-tax amount (G minus H) | I |
I
154,504
|
Commuted value (after taxes) (D plus I) | J |
J
591,304
|
RRSP contribution | K |
K
|
Commuted value & RRSP contribution (J plus K) | L |
L
|
Monthly pension amount |
3,500
|
Pension received at start or end of month? |
|
2.00%
|
25
|
5.00%
|
Lump sum (present value) of lifetime pension |
740,315
|
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