Personal Finance

RRSP Spousal Contribution and LLP Withdrawl

  • Last Updated:
  • Feb 27th, 2010 2:59 pm
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[OP]
Newbie
Oct 29, 2007
48 posts
88 upvotes

RRSP Spousal Contribution and LLP Withdrawl

Hi,

Here is the scenario. My wife has ~7K of RRSP contribution room and has never contributed to RRSPs before. I would like to make a 7K spousal RRSP contribution prior to March 1, 2010 and I would claim the spousal contribution on MY 2009 taxes since she is in a lower bracket than myself (to yield maximum return).

Next, since I am a full time student, I would like to have her withdraw the 7K from the spousal RRSP under the LLP as a spousal withdrawl (which seems completely doable: http://www.icicibank.ca/pdf/llp.pdf)

The question is...is there a time period by which the RRSP contribution must stay with the bank before my wife can withdraw it for me towards my LLP without penalty or withholding tax?

I notice in other posts they talk about this 3 year window, does that apply to the LLP scenario?
1 reply
Deal Fanatic
User avatar
Dec 27, 2009
6804 posts
3968 upvotes
Ottawa, ON
The spousal contribution hasn't got anything to do with how much room she has - it is related to how much contribution room you have. If you are contributing to her RRSP, and you have $15,000 of room, then you could do a $15,000 spousal contribution if you wanted.

As for the LLP rules when it comes to spousal contributions I would consult an expert. I googled it and couldn't come up with an answer.

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