Pension income and RRSPs

Q – Is Pension Income considered ‘earned income’. This would allow me to contribute RRSP money on this amount. I am retiring with a pension from my place of work very shortly and this info is valuable to me when considering how much earned income I will have re my 2002 taxes and what RRSP contribution room will be available. I now have a $2,000 RRSP overpayment and I have to decide if I should use this as part of my 2002 RRSP contribution. – J.-G. B.

A – Sorry, but I have to tell you that pension income is not considered to be “earned income” for RRSP purposes. Therefore, that money cannot be used in the calculation of an RRSP contribution limit. Check Gordon Pape’s 2002 Buyer’s Guide to RRSPs for more details. – G.P.