SPOUSAL RRSP AND RE-INVESTMENT

 

Use this tool to evaluate the benefit of cashing in the RRSP  of a lower income spouse and re-investing and claiming the tax bebefit with the higher income partner.

 

The benefit can be realized under the following two possible scenarios:

 

1. Your spouse has lower income than you and have RRSP that were originally claimed on her own income tax when they were purchased.

2. Your spouse has lower income than you and have RRSP in her name that you have claimed on your income tax when they were purchased past. 

 

You can withdraw iunder your spouse's name and re-invest to her name or yours and claim on your income tax for the first scenario without penalty or conditions to meet.

 

In the second scenario, you can only withdraw your spousal RRSP under her name and re-invest and claim for yourself if you meet the following conditions: