In this video, we will walk you through how to use the optimize pension splitting feature in the Canadian software.
Transcript
In this plan, I have a client with a couple of defined benefit (DB) pensions, and I want to ensure that withdrawals are made in the most tax-efficient way possible.
First, go to Plan Settings → Calculation Settings. Here, you will see the option to Optimize Pension Splitting. Turn this option on and click Done.
To see how this affects your client’s plan, go to Year View → Taxes section. Scroll to the retirement years when the pension is active. Scroll down, and you will see the pension income withdrawals listed along with the split to the spouse. This ensures a more equitable distribution of pension withdrawals.
I hope this was helpful. If you have any questions, click on your client’s name in the top right, select Request Support, enter your question, and share client access. This will send us a message, and we can take a look at your plan.