Spousal RRSPs: What you need to know
Spousal RRSPs were designed to help married and common-law partners split their future retirement income. Typically, the higher-earning spouse is the contributor and the lower-income spouse is the annuitant and account holder. The contributor spouse can’t exceed their own RRSP limit.
Attribution rules limit income splitting, reducing the short-term benefits of spousal RRSPs. This means withdrawals will be taxed in the hands of the higher-earning spouse, not the lower-earning one as expected.
Original Article Source Credits: Advisors , https://www.advisor.ca/
Article Written By: Curtis Davis
Original Article Posted on: March 14, 2022
Link to Original Article: https://www.advisor.ca/magazine-archives_/advisors-edge_/spousal-rrsps-what-you-need-to-know/