Spousal RSPs

Right for you if:

You have a spouse and want to take full advantage of RSP features
You want to allow your spouse to make contributions to your plan

Overview

Ability to contribute to your spouse's RSP
Income splitting opportunities

As well, spousal RSPs are an effective tool in planning for a couple's retirement. Typically, a couple with one wage earner is best suited for a Spousal RSP.

How it Works

Income Splitting
Spousal RSPs potentially reduces a couple's overall tax bill by shifting the income from the spouse that earns a higher income to the spouse who earns a lower income.

Withdrawing Funds
If a withdrawal is made from the account within three calendar years*, it will be taxed in the hands of the contributing spouse.

Spousal vs. non-spousal RSP
Depending on the circumstances, it may be more appropriate for spouses to have two accounts. So, if you need to make a withdrawal before retirement, you can make it from the account that will benefit more from a tax perspective.