Could a Spousal RRSP Help You?

Listen to this Podcast


Could a Spousal RRSP Help You?

Most people are familiar with how RRSP contributions can help them save money and reduce their tax bill. For some couples, a spousal RRSP can be an especially effective way to do this.

How a spousal RRSP helps
Spousal RRSPs are a form of income splitting. They are usually used when the two partners have significantly different levels of income — for example, if one person works while the other stays home to raise children.

The net effect is to lower the couple’s overall tax burden in two ways. First, by reducing the higher earning partner’s taxable income during the working years. Second, by paying a lower tax rate when the money is withdrawn by the lower income partner in retirement.

How a spousal RRSP works
Here’s what happens when you set up a spousal RRSP:

  • The higher earning spouse or common-law partner makes a contribution to an RRSP registered in the name of the lower earning spouse or partner.
  • The contributing spouse receives the tax credit, which reduces their taxable income.
  • The recipient spouse will own that RRSP and will be taxed when the money is withdrawn based on their own (usually lower) tax rate.
  • However, if the recipient withdraws the money within the first three years, the contributing spouse pays the tax.
  • The amount that may be put into a spousal RRSP is based on the contributing spouse’s RRSP contribution room; the recipient spouse’s contribution room is not affected.

It is also possible to combine a personal RRSP with a spousal RRSP. The totality of the funds will be treated as a spousal RRSP when withdrawn.

Know your marginal tax rate
Generally speaking, the goal of tax planning is to reduce a person’s marginal tax rate (the highest rate of tax they pay). In the case of a couple, the greatest benefit is achieved by reducing the taxable income of the person with the highest marginal tax rate.

If you’re considering setting up a spousal RRSP, you can easily check your marginal tax rates by entering your current taxable incomes (and estimate what they might be if you were to contribute to a spousal RRSP) into this calculator.

Right for you?
You may receive a note like this urging you to consider a spousal RRSP and other savings approaches. Tax planning can be complex, so it’s helpful to get expert advice. Contact your Carte Financial Group advisor today to discuss an RRSP tax strategy that could involve a spousal RRSP.

186 thoughts on “Could a Spousal RRSP Help You?

  1. Ahmad Parthemore says:

    The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention.

  2. smoretraiolit says:

    Excellent blog! Do you have any suggestions for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m completely overwhelmed .. Any suggestions? Many thanks!

  3. a course in miracles says:

    An impressive share, I simply given this onto a colleague who was doing a little bit analysis on this. And he the truth is purchased me breakfast because I discovered it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to debate this, I really feel strongly about it and love studying more on this topic. If attainable, as you turn into experience, would you mind updating your weblog with extra particulars? It is extremely helpful for me. Large thumb up for this weblog put up!

  4. elementor tutorial says:

    Nice blog here! Additionally your website quite a bit up fast! What host are you the usage of? Can I get your associate hyperlink for your host? I desire my site loaded up as quickly as yours lol

  5. Aceite Vape says:

    I’m the co-founder of JustCBD company (justcbdstore.com) and I’m presently looking to expand my wholesale side of company. It would be great if anybody at targetdomain give me some advice . I thought that the most ideal way to do this would be to connect to vape companies and cbd retail stores. I was hoping if anybody at all could suggest a reliable web site where I can buy Vape Shop B2B Marketing List I am presently considering creativebeartech.com, theeliquidboutique.co.uk and wowitloveithaveit.com. Not sure which one would be the most suitable choice and would appreciate any support on this. Or would it be easier for me to scrape my own leads? Ideas?

  6. 프라그마틱 무료 says:

    프라그마틱 슬롯에 대한 정보가 정말 유용했어요! 더불어, 제 사이트에서도 프라그마틱과 관련된 새로운 내용을 찾아보세요. 함께 지식을 나누면 좋겠어요!
    프라그마틱 슬롯 무료

    프라그마틱에 대한 내용이 정말 유익했어요! 또한, 제 사이트에서도 프라그마틱과 관련된 정보를 찾아보실 수 있어요. 함께 지식을 공유해보세요!

    https://themarketlobby.com/
    https://btob-business.com/
    https://www.freedietlinks.com

  7. 프라그마틱플레이 says:

    프라그마틱 게임은 iGaming의 선도적인 콘텐츠 제공 업체로, 최고 품질의 엔터테인먼트를 제공하기 위해 모바일 중심 다양한 포트폴리오를 갖추고 있습니다.
    프라그마틷

    프라그마틱에 대한 글 읽는 것이 정말 즐거웠어요! 또한, 제 사이트에서도 프라그마틱과 관련된 정보를 공유하고 있어요. 함께 발전하며 더 많은 지식을 쌓아가요!

    https://www.gocopernicus.com
    https://www.sotradi.com
    https://www.qtantra.com

  8. 프라그마틱 홈페이지 says:

    프라그마틱에 대한 이 글 감사합니다. 더불어, 제 사이트에서도 프라그마틱과 관련된 유용한 정보를 찾아보세요. 서로 이야기 나누면 더 좋겠죠!
    프라그마틱슬롯

    프라그마틱 슬롯을 다룬 글 정말 유익해요! 더불어, 제 사이트에서도 프라그마틱에 대한 새로운 소식을 전하고 있어요. 함께 지식을 나누면 좋겠어요!

    https://www.cicoresky.com
    https://www.naugblog.com
    https://www.chubbycurvy.com

  9. 프라그마틷 says:

    프라그마틱 게임은 iGaming 분야에서 주목받는 주요 제공 업체로, 독창적이고 표준화된 콘텐츠를 제공합니다.
    프라그마틱 홈페이지

    프라그마틱 관련 글 읽는 것이 즐거웠어요! 또한, 제 사이트에서도 프라그마틱에 대한 정보를 공유하고 있어요. 함께 교류하며 더 많은 지식을 얻어봐요!

    https://www.revelkid.com
    https://www.tinnaangel.com
    https://njshidoo.com/hot/

  10. ppu-prof_Mi says:

    Наша группа квалифицированных исполнителей подготовлена предъявить вам современные методы, которые не только ассигнуруют прочную защиту от холодных воздействий, но и подарят вашему собственности современный вид.
    Мы функционируем с самыми современными составами, ассигнуруя продолжительный продолжительность использования и блестящие итоги. Утепление фронтонов – это не только экономия ресурсов на тепле, но и ухаживание о природной среде. Энергоэффективные подходы, какие мы внедряем, способствуют не только дому, но и поддержанию природных ресурсов.
    Самое основополагающее: Утепление фасада стоимость работ за кв м у нас стартует всего от 1250 рублей за м²! Это доступное решение, которое переделает ваш резиденцию в реальный тепловой угол с минимальными издержками.
    Наши пособия – это не единственно изоляция, это созидание помещения, в где все деталь выражает ваш собственный образ действия. Мы примем в расчет все ваши желания, чтобы воплотить ваш дом еще еще больше удобным и привлекательным.
    Подробнее на https://stroystandart-kirov.ru
    Не откладывайте занятия о своем помещении на потом! Обращайтесь к исполнителям, и мы сделаем ваш дворец не только более теплым, но и по последней моде. Заинтересовались? Подробнее о наших сервисах вы можете узнать на интернет-портале. Добро пожаловать в пределы удобства и высоких стандартов.

  11. 프라그마틱 플레이 says:

    프라그마틱 플레이의 빙고 게임은 온라인 카지노에 브랜드에 맞는 게임을 제공하는 데 필요한 모든 도구를 제공합니다. 심플한 통합으로 플레이어에게 독특하고 신선한 빙고 체험을 선사합니다.
    프라그마틷

    프라그마틱 슬롯에 대한 내용이 정말 도움이 되었어요! 더불어, 제 사이트에서도 프라그마틱과 관련된 정보를 찾아보세요. 함께 서로 이야기하며 더 많은 지식을 쌓아가요!

    https://aintec.net/hot/
    https://www.revelkid.com
    https://www.artyfartylife.com

  12. 프라그마틱 플레이 says:

    33개 언어와 다양한 화폐를 지원하여, 프라그마틱 플레이는 세계 시장에 제공되는 슬롯 포트폴리오를 운영합니다.
    PG 소프트

    프라그마틱 슬롯을 다룬 글 정말 유익해요! 더불어, 제 사이트에서도 프라그마틱에 대한 새로운 소식을 전하고 있어요. 함께 지식을 나누면 좋겠어요!

    https://www.12315hv.cn/
    https://www.12315qu.cn/
    https://munirahkasim.com/link/

  13. Seo-Ul-son says:

    Мы служба специалистов по продвижению в интернете, специализирующихся на продвижении сайтов в поисковых системах.
    Мы постигли успехи в своей области и готовы поделиться с вами нашими знаниями и опытом.
    Что мы можем вам предложить:
    сео раскрутка сайтов стоимость
    • Полный аудит вашего сайта и создание индивидуальной стратегии продвижения.
    • Усовершенствование контента и технических особенностей вашего сайта для достижения максимальной производительности.
    • Ежедневный анализ данных и мониторинг вашего онлайн-присутствия для постоянного улучшения его эффективности.
    Подробнее https://seo-prodvizhenie-ulyanovsk1.ru/
    Уже много клиентов оценили результаты: рост посещаемости, улучшение позиций в поисковых системах и, конечно, рост бизнеса. Мы можем предоставить вам бесплатную консультацию, для того чтобы обсудить ваши требования и помочь вам разработать стратегию продвижения, соответствующую вашим целям и бюджету.
    Не упустите возможность увеличить прибыль вашего бизнеса в онлайн-мире. Обращайтесь к нам уже сегодня.

Leave a Reply

Your email address will not be published. Required fields are marked *