topic Canadian Registered Pension Plan in Get your taxes done using TurboTax

Canadian Registered Pension Plan

KS99 — Thu, 30 Aug 2018 21:19:05 GMT

Is a "registered" Canadian Pension plan considered a "qualified" retirement plan (as defined in IRC code sections 402 through 408 or section 457)? I can't tell if this is addressed in the Canada-US tax treaty. In my case, the State of Illinois want proof before they will allow me to subtract the retirement income.

Re: Canadian Registered Pension Plan

Carl — Fri, 31 Aug 2018 04:21:41 GMT

A "pension" is not a qualified plan, and distributions are taxable income to the recipient.

Read https://smartasset.com/retirement/what-is-a-pension-plan to understand just what a pension plan is and to confirm that is "in fact" what you have.

Re: Canadian Registered Pension Plan

KS99 — Sat, 01 Sep 2018 00:29:37 GMT

I believe most pensions ARE qualified plans:

https://ttlc.intuit.com/questions/4380390-how-do-i-know-if-1099-r-is-qualified-or-non-qualified-my-dad-passed-away-last-year-at-age-of-90-retired-when-he-was-about-57yrs-old-i-have-several-1099-r

Also, I see there is a check box near the bottom of the TurboTax generated 1099-R form which states "Check if NOT from a qualified retirement plan or IRA"

My dilemma is how to determine if a Canadian pension can be considered qualified (just as is my US employer pension is). In Illinois, qualified retirement income can be subtracted from federal AGI.