Spousal RRSP

Chapter 5 page 16

One may contribute to an RRSP registered in the name of a spouse and still claim a deduction. This plan allow the couple to divide their ultimate retirement income between them and this may result in a lower total tax bill.

Is important to note that the contributor to the spousal plan claims the tax deduction , but the assets of the spousal RRSP belong to the spouse (i.e., the plan holder).

Example: Jane has earned income of $4.000 last year. Her student husband had no earnings.
Assuming that Jane is not a member of a registered pension plan, but has her own RRSP to which she will contribute $6,000. How much Jane contribute to a spousal RRSP?

18% × (previous year earned income)

Jane's contribution limit = $49,000 × 18% = $8,820

Maximum RRSP contribution $8,820

Less: contribution to her own RRSP: $6,000

Maximum contribution to spousal RRSP: $2,820


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