You will need information from the following table to answer this question: Attained Age Present Value Factor Attained Age Present Value Factor Under 50 9 50 9.2 51 9.6 52 9.8 Chandler is 50 years old and a member of a defined benefit plan in Ontario. Chandler is deciding whether to take pension income in retirement or commute the value of his DB plan to a Locked-In Retirement Account (LIRA). His annual benefit at age 65 would be $22,000 per year. Chandler also has $12,600 of RRSP Contribution Room. Chandler's commuted value is $220,000. What amount, if any, will Chandler have to be taxed on should he chose to commute the value of his DB plan?

Answer rating: 100% (QA)

Taxable Amount on Commuting Chandlers DB Plan Step 1 Calculat... View the full answer