This article details the method to acquire the optimum retirement transfer amount for a TP1’s client.
1. Complete form T1032 on the federal side.
2. Open Form TP1Q – Retirement Income Transferred to your spouse for 20[YY]in the return of the person receiving the pension:
3. Confirm the checkbox indicating the person is the Pensioner is checked by the T1032 form:
4. Select the Retirement Income Transfer link:
5. The TP1QOpt - Optimize Retirement Income Transfer form opens:
6. Right-click anywhere on the TP1QOpt - Optimize Retirement Income Transfer form; the selection menu displays:
7. Select Optimize retirement income transfer from the selection menu.
The TP1QOpt form populates with the optimum suggested split-pension information. At the bottom of the form a graph displays various impacts on the combined income tax/balance dues at various pension income split dollar values:
8. Enter the amount desired in field Retirement income transferred. The amount displays on line 22 of the TP1QOpt.
Using the scenario's in the Calculator section
- Select the Retirement income transfer box under Scenario # 1.
- Enter the amount of pension income to be transferred.
- Press <Enter>.
The calculator displays the Income tax contribution and Balance Owing for each individual, as well as combined net benefit for the couple.