Personal Finance

Spouse RRSP, need special account?

  • Last Updated:
  • Dec 3rd, 2020 4:40 am
[OP]
Sr. Member
Dec 13, 2006
589 posts
269 upvotes

Spouse RRSP, need special account?

Hi,

me and my wife both have a RRSP with BMO Investor line. I usually do contribution from a shared bank account and use the BMO Investor Line Tax Information at the end of the year to declare RRSP contribution.

I have a lot of unused RRSP room, and my wife have none. I would like to contribute to her RRSP. Can I simply transfer money in her RRSP account, and at the end of the year deduct it on My tax? or I need a special RRSP account for that?
5 replies
Member
May 24, 2018
460 posts
291 upvotes
Ontario
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 ?
Member
User avatar
Nov 3, 2008
281 posts
210 upvotes
National Capital Reg…
hwyc2007 wrote: ... got me thinking, with the rise of pension income splitting, does spousal RRSP still matter ?
Yes. RRSP is property (Spousal RRSP legally belongs to the spouse). Pension splitting is just a tax law that can change with government of the day.
Deal Addict
Mar 10, 2011
2304 posts
415 upvotes
Toronto
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.
Deal Fanatic
User avatar
Jan 31, 2006
7083 posts
1785 upvotes
Toronto
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.

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