Spousal RRSP

How the account works

A spousal RRSP is not a different kind of plan. It is an ordinary RRSP in which your spouse or common-law partner is the annuitant, which means they own the investments and are the person entitled to take money out. You are the contributor. Your deduction comes out of your own RRSP deduction limit, so a spousal contribution counts against your own limit, not your partner’s.

The same calendar applies as for any RRSP: contributions made during the year or within the first 60 days of the following year can generally be claimed for the earlier year. You can keep contributing to a spousal plan after the year you turn 71, provided your spouse or common-law partner is 71 or younger on December 31 of the year you contribute and you still have deduction room.

Who is taxed on a withdrawal

The tax point is the one people most often miss. If your partner withdraws money while you have contributed to any spousal RRSP of theirs in the year of the withdrawal or in either of the two preceding years, you will probably have to include some or all of the withdrawal in your own income, up to your contributions in that period. If you have not contributed in those years, the withdrawal is generally taxed to your partner.

The same idea applies to a spousal RRIF: payments above the minimum for the year can be taxed to you if the contribution timing applies, while the minimum payment is not. Form T2205 works out how much is reported on each return, even though the slip is usually in your partner’s name.

An illustrative example

Suppose you expect a higher retirement income than your partner. You contribute $10,000 to your partner’s spousal RRSP in 2026 and deduct it on your 2026 return. If your partner withdraws $10,000 in 2027, your 2026 contribution falls inside the look-back window, so that withdrawal is likely reported by you. If you make no further spousal contributions and your partner waits until 2029 or later to withdraw, the window has passed and the income is generally theirs. The figures are illustrative.

Common mistakes and limits

Contributing in December and withdrawing in January is the usual trap, because the withdrawal is attributed back to the contributor. Another is assuming the account is shared: it belongs to the annuitant, so ask about separation or death before relying on it.

A spousal RRSP is a way of shifting future taxable income between partners. It does not change how much tax is paid in total if both partners end up in the same bracket, and it is separate from the attribution rules for gifts and loans between family members.

What to discuss with your accountant

Bring both partners’ notices of assessment, your contribution receipts and any Form T2205 from earlier withdrawals. Ask whether your expected incomes make a spousal plan worthwhile, when your partner could withdraw without attribution, and how it fits with a RRIF and pension income splitting later on.