If the answer is "yes", you should consider a spousal RRSP.Spousal RRSPs are one of the few remaining ways in which a married or common-law couple can save tax dollars by income splitting. Basically, any amount that you are eligible to contribute to your own RRSP may be directed instead to a spousal RRSP.You assume full responsibility for transactions in your CIBC Investor's Edge account and for your investment decisions.
So, setting up a spousal RRSP can be a good idea if your spouse or common-law partner is likely to be in a lower tax bracket than you in retirement.
Here are four situations in which a spousal RRSP can still provide a substantial benefit to taxpayers: The experts say it's best to use tax software programs (or hire a tax professional) to figure out if any income-splitting or other sharing manoeuvre makes financial sense.
Spousal RRSPs allow the high-earning individual to contribute to their spouse's RRSP but claim the deduction themselves.
When it comes time to withdraw the funds from the RRSP, the money is taxed in the hands of the spouse, as long as the contribution has remained in the plan for at least two calendar years after the year in which it was first deposited.
If your annual contribution limit is $10,000, your combined contributions to both your RRSP and your spouse's can't exceed $10,000 and still qualify for a deduction.