Spousal RRSPs: What you need to know

Author: External Author | | Categories: Accounting Services , Bookkeeping Services , Tax Accountant , Tax Planning

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.

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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/