Spouse RRSP, need special account?

For your scenario, a new *spousal* RRSP for her is required for *you* to make contribution and claim the deduction.

... got me thinking, with the rise of pension income splitting, does spousal RRSP still matter ?

Thanks

hwyc2007 wrote: ↑ ... got me thinking, with the rise of pension income splitting, does spousal RRSP still matter ?

Yes it matters. With a spousal RSP 100% of the income taken out of the RIF is shifted to the spouse. With pension income splitting, only 50% of the income can be split with the spouse. This can be a big difference for couples where one spouse was the main bread winner and the other spouse worked much less or not at all during the couples working life and did not accumulate nearly as much in terms of RSP or DB Pension.

As NCR-Manchester mentioned, pension income splitting could go by the wayside at some point. The Feds are now running an incredibly high $381B deficit and the day will come (after covid 19 is gone) when we will have to pay the piper and taxes will either be raised or tax credits reduced to pay for it. Who knows what that will look like.

Also remember if you make an spousal RRSP contribution, if your spouse make a withdrawal before 3 years, it will be tax at your hand.