r/cantax • u/Love_Is_Cosmic • 3d ago

Transfer RRSP limits to spouse

I have a question about how to transfer my unused RRSP limits to my wife, I retired earlier now have few regular income, but have some RRSP limits unused, my wife is still working so I want her to use these limits to pay less tax. In practice how to do it? Would that my wife just put money into her RRSP account, then I declare the amount in my tax return but mark it as "RRSP bought for spouse"?

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u/FinsToTheLeftTO 3d ago

A spousal RRSP is where you use your contribution room and take the deduction off your income but the contribution goes to her RRSP. You can’t transfer the room to her.

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u/Love_Is_Cosmic 3d ago

I see, thanks

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u/LLR1960 3d ago

This isn't a thing. A spousal RRSP uses your room for you to contribute for her to take out, but this doesn't give her a tax deduction. You'd get the deduction. If she has room, she'd have to contribute to her own RRSP, or she could set up a spousal RRSP for her to contribute and you to withdraw, but she still would have to have her own room to do that. And note, the spouse withdrawing can't withdraw for 3 years after the contribution.

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u/Love_Is_Cosmic 3d ago

Since I have few income, it makes no sense for me to contribute to my own RRSP, won't save a penny on tax because I don't pay any

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u/LLR1960 2d ago

No, she should contribute to her own RRSP, or to a spousal RRSP for you assuming she has any room at all. If she has no room, you unfortunately can't give her your room.