28 June 2022 14:09

If I contribute to my spouse’s RRSP, is every dollar of my contribution tax deductible?

Immediate tax break. For every dollar you contribute to your personal or spousal RRSP, your taxable income for the year is reduced by an equal amount.

Can I claim my spouse’s RRSP contribution?

A spousal RRSP allows you to contribute money to your spouse or common-law partner’s registered retirement savings plan, up to your personal contribution limit. When a contribution is made to the spousal RRSP, the contributor receives a tax deduction.

Who gets the tax deduction in a spousal RRSP?

With a spousal RRSP, the wife makes annual contributions to her husband’s account. So when they retire, they each get $50,000 in retirement income. It’s the same total , but because each spouse is in a lower tax bracket they pay less total tax than in the first case.

How is a spousal RRSP taxed?

If your spouse withdraws money from their RRSP, it’s taxed at their rate. Except, if they withdraw within 3 years of a contribution from you, you’ll have to claim that as your taxable income, not your spouse’s.

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