Spousal RRSP Withdrawals

A Spousal RRSP (Registered Retirement Savings Plan) allows you to contribute money each year up to your personal contribution limit to save for your spouse or common-law partner's retirement. The plan helps balance your income as a couple and works best when there is a large gap between you and your spouse's income. When a contribution is made to the spousal RRSP the contributor receives a tax deduction that could lower their taxable income for the year, while the lower-earning spouse should get taxed at a lower marginal tax rate when the money is withdrawn. However, there is a three-year attribution rule that applies to the withdrawal of money from a spousal RRSP. If not timed correctly, withdrawals may be taxed in the higher-earning contributor’s name rather than the spouse’s.

Use the Spousal RRSP calculator to determine exactly when withdrawals from a spousal RRSP are taxed in the contributor's vs the spouse's hands.