What is a Spousal RRSP?


RRSPs could help you meet your financial goals

Meet with us in person or over the phone and let us show you how.

Young couple looking through paperwork

How do Spousal RRSPs work?

A spousal RRSP allows you to contribute money to your spouse or common-law partner's registered retirement savings plan, up to your personal contribution limit.

When a contribution is made to the spousal RRSP, the contributor receives a tax deduction.

This can help you balance your income as a couple and works best when a large disparity exists between you and your spouse's income.

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On the other hand, the lower-earning spouse should get taxed at a lower marginal tax rate when the money is withdrawn from the Spousal RRSP. This means potentially paying less tax on your Spousal RRSP assets at retirement.


Benefits of Contributing to a Spousal RRSP

  • Income splitting: Your Spousal RRSP allows you to potentially reduce the family’s overall tax bill in retirement by more evenly splitting sources of retirement income.
  • Additional tax breaks: Contributing to your spouse's RRSP can help you defer tax. The higher-income earner gets a tax deduction when contributions to the Spousal RRSP are made; and eventually, withdrawals from the plan are taxed based on the marginal tax rate of the lower-income earner.


You may also be interested in:

Rules on Withdrawing from an RRSP

What should you consider when withdrawing from an RRSP? We’re here to help. Follow this guide to learn more about RRSP withdrawal rules.

RRSP Contribution and Deduction Limit Rules

What should you consider when contributing to an RRSP? We break down the rules on making RRSP contribution.

See what types of RRSPs TD offers

Start saving for what’s essential to you.

Open a RRSP with TD and start saving for your retirement.



Looking for advice? We can help.
Back to top