Spousal RRSP by Craven Financial
Discover how a Spousal Registered Retirement Savings Plan (RRSP) in Canada can help you build wealth for your retirement.
Grow Your Savings
With tax-deferred growth and potential income-splitting benefits, a Spousal RRSP is an excellent tool for couples to plan for retirement. By contributing to your spouse’s RRSP, you can reduce your taxable income while helping your partner build their retirement savings. This strategy can be particularly useful if one spouse expects to have a lower income during retirement, allowing for tax advantages upon withdrawal. A Spousal RRSP offers flexibility and a wide range of investment options to grow your retirement savings together efficiently.
Common Questions About Spousal RRSPs:
- What investments can be held in a Spousal RRSP?
Similar to regular RRSPs, you can invest in stocks, bonds, mutual funds, GICs, ETFs, and more. - How does a Spousal RRSP help with tax planning?
The contributing spouse can claim the deduction, while the receiving spouse withdraws the funds at a potentially lower tax rate during retirement. - What strategies can maximize a Spousal RRSP?
Strategic income-splitting, maximizing contributions, and long-term investments can optimize tax savings and retirement income.
Ready to maximize your retirement savings as a couple? Contact William (Bill) Craven today for tailored Spousal RRSP strategies.
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A Spousal Registered Retirement Savings Plan (Spousal RRSP) is a strategic investment tool that allows one spouse to contribute to the other’s RRSP.
Frequently Asked Questions about RRSP
A Spousal RRSP is a retirement savings account where one spouse contributes to the other’s RRSP to help with income-splitting in retirement.
Both spouses benefit, but it’s especially useful if one spouse earns significantly more and expects to have a higher income in retirement.
The contributing spouse claims the tax deduction, while the receiving spouse holds the RRSP and withdrawals are taxed in their hands.
It allows for income-splitting, potentially lowering the overall tax burden during retirement by withdrawing at a lower tax rate.
If the receiving spouse withdraws funds within three years of the contribution, the amount may be taxed in the contributor’s hands.
Yes, as long as the total contributions don’t exceed your personal RRSP contribution limit.
A Spousal RRSP is most effective when the contributing spouse has a significantly higher income and the receiving spouse is likely to have a lower income in retirement.
