Contribution Limits for Spousal RRSPs

Spousal RRSPs

Contribution Limits for Spousal RRSPs

A married RRSP plan holder may contribute to an RRSP registered in the name of his or her spouse and claim a tax deduction to the extent that the contribution does not exceed the maximum available for his or her own plan.

For example, where a husband has a maximum contribution limit of $15,500 for his own RRSP but only contributes $9,000, he may contribute $6,500 to a spousal RRSP. His own total tax deduction would be $15,500. In addition, his wife could also contribute to her own plan up to her allowable limit and claim a corresponding tax deduction. The potential for income splitting and tax savings afforded by spousal RRSPs can be considerable but the following factors determine the degree of benefit: