Q&A: Disagrees with accountant

Question: My wife is 62, retired, and is receiving a pension from Air Canada. Can she contribute to an RRSP? Her accountant is saying no but I think differently. – Bob. W.

Gordon Pape answers: Well, that’s why we pay our accountants the big bucks. They’re supposed to know more about tax laws than we do. He is correct, if you have provided complete information. Pensions are not consider to be “earned income” for RRSP purposes. However, your wife can contribute to an RRSP if she has earned income from other sources, such as a part-time job. The issue here is not her age; it is the source of the income.

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