Spousal RRSP Contributions in Canada

There are tax and estate planning advantages to making Spousal RRSP contributions. Typically, when making an RRSP contribution into a plan with your name on it, you receive a deduction against taxable income and upon withdrawing the funds, it becomes part of future income.


Having spousal or common-law RRSP contributions goes into your spouses plan but does use your contribution room giving you the tax deduction. The benefit to this is your spouse will report the future income which should allow for income balancing, if you make more money than your spouse.
Spousal RRSP’s is also a way to split retirement income. Any funds you put into the RRSP are tax free until you take it out.


Thinking about buying a house for the first time? Using one spouse’s RRSP and the other Spouse’s spousal RRSP for the Home Buyer’s Plan doubles the $25,000 maximum withdrawal.
The amount you can contribute during any year is indicated on your notice of assessment, and cannot be over your contribution limit, although your spouse’s contribution limit is not affected by the spousal RRSP. There is also a limitation as to how long a spouse must hold the funds in an RRSP before withdrawing the funds. Should the spouse withdraw the funds from the RRSP before this time passes, the income can be attributed back to the contributing spouse.
For more information, do not hesitate to contact our office to discuss a plan that is best suited for your family.