Personal Finance

Spousal RRSP question

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  • Feb 21st, 2017 4:50 pm
Newbie
Dec 22, 2012
18 posts
2 upvotes

Spousal RRSP question

Hi All... Hoping someone can clarify.

I just opened Self directed RRSP for me and my spouse with TD direct investment. The Rep at the bank opened both personal RRSP & Spousal RRSP for both me and my wife. So a total of 4 accounts. I am the higher income holder and want to contribute to the spousal RRSP. Which account is the right account to deposit the money to. Is it my spousal RRSP account or my wifes spousal RRSP account?

The rep deposited the money into my wifes spousal RRSP account and he did check with a few others in the branch who confirmed that this is fine. Can someone confirm if this is the right account to deposit the RRSP contribution. Any one with similar experience, please advice.
11 replies
Sr. Member
User avatar
Apr 22, 2014
552 posts
279 upvotes
Edmonton, AB
Yes, that is correct. The person who's name is on the account is considered the annuitant. You as the contributor would contribute to her account (she is the annuitant).

Just make sure when you get the receipt it shows her as the annuitant and you as the contributor.
Deal Addict
Aug 30, 2011
3537 posts
1279 upvotes
Ottawa
Not sure why they opened a spousal rrsp for your wife. If she is the lower wage earner, there is no benefit.

The amount you contribute to your RRSP and to the spousal RRSP cannot be more than your RRSP contribution room, but presumably you were made aware of that.
Deal Addict
User avatar
Feb 6, 2012
4947 posts
425 upvotes
Gloucester, Canada
OttawaGardener wrote: Not sure why they opened a spousal rrsp for your wife. If she is the lower wage earner, there is no benefit.

The amount you contribute to your RRSP and to the spousal RRSP cannot be more than your RRSP contribution room, but presumably you were made aware of that.
+1. Also I would put money in the spousal RRSP before putting on my own. Well unless you worried she run away with that money but then in that case, you shouldn't put any money in Spousal RRSP
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Deal Addict
User avatar
Jan 4, 2009
4191 posts
5292 upvotes
on the links!
OttawaGardener wrote: Not sure why they opened a spousal rrsp for your wife. If she is the lower wage earner, there is no benefit.
It's easy to understand why the bank rep opened this account...that's the business they're in. The more pertinent question is why did the OP agree to it.
Deal Fanatic
Dec 16, 2005
6905 posts
5592 upvotes
Lostwords wrote: +1. Also I would put money in the spousal RRSP before putting on my own. Well unless you worried she run away with that money but then in that case, you shouldn't put any money in Spousal RRSP
Curious, what difference does it make? Why put it in the spousal before yours? Is your wife not working or has very low income?

What other reasons do you have for doing this?
Newbie
Dec 22, 2012
18 posts
2 upvotes
yeah wife's income is considerably less than what I make...
Just to reconfirm, my wife has a person RRSP and a Spousal RRSP.. .the money was deposited in wifes Spousal RRSP account.... this was the part that confused me...
I am waiting for the receipt to see how it shows up... want to make sure that money is the right account..
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2992 upvotes
OttawaGardener wrote: Not sure why they opened a spousal rrsp for your wife. If she is the lower wage earner, there is no benefit.

The amount you contribute to your RRSP and to the spousal RRSP cannot be more than your RRSP contribution room, but presumably you were made aware of that.
As the annuitant, the spousal RRSP is in her name. I think you probably meant what Sauerkraut said below where the question is why a spousal account was opened in HIS name.
Sauerkraut wrote: That sounds correct. Where I'm confused is why did you open a separate Spousal account in YOUR name? It appears that your wife isn't in a position to deposit funds into it.
Deal Addict
Aug 30, 2011
3537 posts
1279 upvotes
Ottawa
Conquistador wrote: As the annuitant, the spousal RRSP is in her name. I think you probably meant what Sauerkraut said below where the question is why a spousal account was opened in HIS name.
Yes, you are correct, and that's what I meant. :)
Member
Dec 5, 2016
274 posts
56 upvotes
mech9t5 wrote: Curious, what difference does it make? Why put it in the spousal before yours? Is your wife not working or has very low income?

What other reasons do you have for doing this?
Also curious about this as I'm considering opening up a spousal rrsp in the near future
Deal Addict
User avatar
Feb 6, 2012
4947 posts
425 upvotes
Gloucester, Canada
mech9t5 wrote: Curious, what difference does it make? Why put it in the spousal before yours? Is your wife not working or has very low income?

What other reasons do you have for doing this?
Here's the explaination
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Deal Fanatic
Dec 16, 2005
6905 posts
5592 upvotes
Thanks. This is what I'm doing but thought there were other strategies. My wife had zero rrsp so I've been contributing to hers exclusively to bring it equal to mine.

When we retire, and it switches to RIF, it will be better if one person doesn't have a massive rrsp.

The only downside to spousal rrsp is if there is a breakup...

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