Your 2023 RRSP deduction limit is $10,000. You contributed $4,000 to your RRSP,and $6,000 to your common-law partner’s RRSP you chose to deduct the entire $4,000 of your personal RRSP contribution, but only $5,500 of the $6,000 contribution to your common-law partner's RRSP, for a total deduction of $9,500 on line 20800 of your 2023 income tax and benefit return. You used Schedule 7, RRSP, PRPP and SPP Contributions and Transfers, and HBP and LLP Activities, to keep track of his RRSP contributions. You may be able to deduct the remaining $500 ($10,000 – $9,500) on a future year’s income tax and benefit return.
FAQs
Should I contribute to my spouse's RRSP? ›
By contributing to a Spousal RRSP, the higher-earning spouse receives a tax deduction that could lower their personal tax bill for the year. On the other hand, the lower-earning spouse should get taxed at a lower marginal tax rate when the money is withdrawn from the Spousal RRSP.
What is an example of a spousal RRSP contribution? ›For example: If you contribute $6,000 to your RRSP account and another $6,000 to your spouse's RRSP account in a tax year where your contribution limit is $10,000, you can only claim an RRSP deduction for $10,000.
What are the rules for spousal RRSP contributions and withdrawal? ›Spousal RRSPs come with a three-year attribution rule, which only permits withdrawals three years after the deposit date. So, for example, if you deposit funds into a spousal RRSP on January 1, 2024, your spouse or common-law partner won't be able to withdraw the funds until January 1, 2027.
When should you not contribute to RRSP? ›Registered Retirement Savings Plans (RRSPs)
February 29, 2024 is the deadline for contributing to an RRSP for the 2023 tax year. December 31 of the year you turn 71 years of age is the last day you can contribute to your own RRSP. For more information, go to RRSP options when you turn 71.
Investing in an RRSP can reduce your tax burden and grow your retirement savings. Grow your nest egg by taking advantage of compound interest, early contributions, and automated payments.
Who claims spousal RRSP contribution? ›Spousal RRSPs are typically set up in the name of the spouse who has a lower income. If you have RRSP contribution room, you can contribute to your personal RRSP, to your spouse or common law partner's spousal RRSP, or both. With a spousal RRSP, your spouse becomes the annuitant (the owner) of the account.
Can I combine spousal and personal RRSPs into one account? ›Expert Answer: Yes it is possible to combine a spousal plan and an individual plan, as long as both plans have the same annuitant. However, when the two plans are combined, the combined plan will be considered a spousal plan.
Who is the beneficiary of a spousal RRSP? ›the spouse or common-law partner is designated in the RRSP contract or the deceased annuitant's will as the sole beneficiary of the RRSP.
Can you transfer RRSP contributions to your spouse? ›No. You can't move funds from your RRSP to your spouse's RRSP. Funds in your RRSP can't be moved to another RRSP that does not have the same annuitant as the RRSP where the funds are coming from.
What is the disadvantage of a RRSP? ›Limitations and Considerations for Investors
Flexibility Concerns: RRSPs lack liquidity. Early withdrawals can lead to significant tax penalties, except under specific conditions like the Home Buyers' Plan and Lifelong Learning Plan.
Can you split RRSP with your spouse? ›
First of all, spousal or partner RRSPs allow you to split more than 50% of your pension income. With a spousal or partner RRSP, you could theoretically split up to 100% of your RRSP income with your lower-income spouse or partner. pension is reduced by 15% of net income over $86,912 in 2023.
What is the difference between RRSP and spousal RRSP? ›A spousal RRSP is an RRSP that's opened by your spouse but you contribute to it. Your contributions are based on your contribution limit and you claim the tax deduction. Your spouse is the legal owner of the plan and makes all investment decisions and withdrawals.
Is an RRSP withdrawal considered income? ›You can make a withdrawal from your RRSP any time1 as long as your funds are not in a locked-in plan. The withdrawal, however, is subject to withholding tax and the amount also needs to be included as income when filing your taxes. There are situations in which tax-deferred withdrawals can be made from your RRSP.
Does a spousal RRSP have to be converted to a spousal RRIF? ›All RRSPs (including spousal RRSPs) must mature by December 31 of the year you turn 71. Before that time, you have to either transfer your RRSP to a registered retirement income fund (RRIF), use the funds to purchase an eligible annuity or withdraw your RRSP funds in cash or in-kind.
Does it make sense to have two RRSP accounts? ›Having all of your RRSP assets together at one institution makes them easier to manage. Just like decluttering your closet makes it effortless to find a favourite jacket or pair of shoes, bringing your assets together in one spot allows you to quickly and painlessly keep track of your investments.
Can you combine a spousal RRSP and a regular RRSP? ›Your Registered Retirement Savings Plan (RRSP) cannot be combined with a Spousal RRSP. Spousal RRSPs are designed for couples to split retirement income. A spousal RRSP is registered in the name of your spouse or common-law partner. They own the investments in the RRSP, but you can contribute to it.