Spousal RRSP
A Spousal RRSP is an RRSP held in the lower‑income spouse’s name (the annuitant), but funded by the higher‑income spouse (the contributor). It’s commonly used to help balance retirement income between spouses.
The core idea (in plain English)
One spouse may get the deduction now, but the retirement withdrawals are intended to occur under the other spouse’s income later.
How deductions and ownership work
- The contributing spouse generally claims the deduction.
- The annuitant spouse owns the account and assets.
- Contributions use the contributor’s RRSP room.
Attribution rules (important)
If the annuitant withdraws shortly after a contribution, CRA attribution rules may cause the withdrawal to be taxed back to the contributing spouse. Timing rules can be subtle — confirm before planning withdrawals.
If one spouse has much higher income and you want more balanced taxable retirement income later, a Spousal RRSP can be useful — but respect attribution timing.
Educational only. Always confirm limits and withdrawal rules with CRA resources or a qualified professional.