Definition:
A Spousal RRSP is registered in your spouse's or common-law partner's name while you, as the contributing spouse, take a full tax deduction for all the contributions you make to the spousal plan.
Here are some good reasons for contributing to a spousal RRSP:
- to allow the spouse with the higher income take the tax deduction,
- to income split more evenly upon retirement,
- to remove the funds from the RRSP at a lower tax rate prior to retirement, and
- in the case of a spouse over age 71, to make an RRSP contribution and obtain a deduction.
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