Consolidating spousal rrsp

Spousal RRSPs are a way for couples to split retirement income.

The money you put into an RRSP is allowed to grow tax deferred.

I looked through the CRA IT307R4 but am not any clearer on this matter.

consolidating spousal rrsp-3

Based on what they told me I thought I understood - I was under the impression that we to be aware of who's contributing what and understand that if my husband contributes to that account he will be taxed if any of the funds are taken out within 3 years.

Then someone thought even the amount I transferred "in kind" from Trimark would fall under the 3 year rule???

Both spouses would then be in a lower tax bracket and pay income tax at the same lower marginal tax rate.

It may also be useful to build a nest egg for the first retiree if you will not be retiring at the same time.

My husband hasn't contributed to my spousal account in over 10 years but I make yearly contributions in my own name.

I contribute online and before it was commingled I'd get a message from TDW stating that contribution would be in my name.Finally, using one spouse’s RRSP and the other spouse’s spousal RRSP for the Home Buyers’ Plan doubles the ,000 maximum withdrawal.With the market crash a "locked in" RRSP at Invesco Trimark was low enough to unlock so I decided to move it over to my TDW self-directed RRSP account which happens to be a SPOUSAL.Current pension income splitting rules have somewhat diminished the need to use spousal RRSPs to achieve a tax benefit but individual circumstances may still maintain some benefit beside the fact that the income splitting effect is established at the time of contribution and not at the time of withdrawal; thus not subject to changes in tax rules.The spouse who earns more income will likely receive more income in retirement.Your spouse’s contribution limit is not affected by a spousal RRSP.

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