Spousal RRSPs

I thought I would refresh our memories on how a spousal RRSP works.

Spousal RRSPs are great way to split savings between partners. During the savings phase, the contributor gets a tax deduction and in the income phase the spouse receives the income.

It also makes sense from a tax standpoint; the spouse in the higher income tax bracket can make contributions to a spousal RRSP and reduce income that would otherwise be taxed in a higher income tax bracket.

Some reminders on the salient features of a spousal RRSP:

  • Spousal RRSP contributions reduce the net income of the contributor

  • It is the contributor’s RRSP room that is considerd, not the spouse’s

  • Withdrawals made from a spousal RRSP less than three years after the last deposit will be attributable back the contributing spouse and added to their income

  • Even RRIF income may be attributable back to the contributing spouse if the spousal RRIF has withdrawals in excess of the minimum RRIF payment.

If you have any thoughts or questions about spousal RRSPs, please let me know.

The urgency of RRSP seasons of years ago seem to have lessened recently. Which is a good thing, it indicates people are saving more regularly throughout the year.

Thanks to everyone for their support. We’ve had an excellent start to the year because of your efforts. It’s greatly appreciated.

Take care,

Scott Edgington

Director of Wealth

Qualified Financial Services


416 786 4140