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Spousal RRSP advice

What this is

Income-splitting via spousal RRSP

The higher-earning spouse contributes to an RRSP in the LOWER-earning spouse's name. They get the deduction at THEIR marginal rate now, and the spouse pays tax on withdrawal at THEIR (lower) rate. Splits future retirement income across two tax returns.

·Best when one spouse will have meaningfully higher retirement income than the other.
·3-year attribution rule: withdraw within 3 years and the contribution is attributed back to the contributor — they pay the tax instead.
·Pension income splitting (65+) made spousal RRSPs less critical, but they still win for early retirees + non-DB-pension households.

Primary's current income (CAD)Spouse's current incomePrimary's projected retirement incomeSpouse's projected retirement income

Contributor marginal

37.2%

Primary retirement marg.

29.6%

Spouse retirement marg.

20.1%

Savings / $1,000

$171

Higher earner should contribute to a SPOUSAL RRSP

Contributor's retirement income exceeds spouse's; routing into the spouse's RRSP defers tax to a lower bracket.

Educational. Not financial advice. Real recommendation also weighs which spouse has more RRSP room + GIS exposure for the lower-income spouse + estate flow.