How Spousal RRSPs Work: Key Rules for Contributions and Withdrawals
In today’s fast-paced world, retirement planning isn't just about putting money aside—it's about doing it wisely. For Canadian couples, a Spousal RRSP (Registered Retirement Savings Plan) offers a powerful way to cut down your tax bill while building long-term financial security together. Whether you’re based in Calgary, Toronto, or anywhere across Canada, knowing how spousal RRSPs work can unlock smarter savings, smoother income-splitting, and greater peace of mind for the future. Let’s explore how you can turn this tax-advantaged tool into a key part of your retirement success.
What is a Spousal RRSP?
A spousal RRSP allows one spouse (the contributor) to deposit money into a retirement savings account in the other spouse’s name (the annuitant). The contributor gets the tax deduction, while the annuitant owns the funds and will be taxed on withdrawals in retirement ideally at a lower tax rate.
Why Use One?
- Helps split income in retirement
- Reduces overall household tax burden
- Allows the higher-earning spouse to contribute even after age 71 (if the partner is younger)
- Offers a strategic tax deferral and investment growth opportunity
Key Contribution Rules
Understanding contribution limits and strategy is vital for compliance and tax savings.
✔ Contribution Limits
You can contribute up to your own RRSP deduction limit—not your spouse’s. Your combined contributions (personal + spousal) must not exceed your annual room.
For 2025, the annual limit is 18% of 2024 earned income, up to $32,490, plus any unused carry-forward room.
✔ Age Rules
You can contribute to a spousal RRSP until the end of the year your spouse turns 71, even if you’re older.
✔ Deadlines
To claim your contribution for the 2024 tax year, the deadline is March 3, 2025.
Withdrawal Rules & Attribution Rule
Most taxpayers only think about taxes in March or April—but smart tax planning starts now. With our year-round support, we help clients:
- Reduce taxes owed legally through deductions and credits
- Plan RRSP and TFSA contributions for max impact
- Structure self-employment income efficiently
Prepare for life changes like home purchases, new dependents, or business growth
The 3 Year Attribution Rule
If your spouse withdraws funds within 3 calendar years of your contribution, you’ll be taxed, not them. This can nullify the benefits of splitting income.
Example:
You contributed in 2023. If your spouse withdraws in 2024, 2025, or 2026, the withdrawal may be taxed back to you.
✔ Exceptions:
- No contributions made in the past 3 years
- Divorce or legal separation
- Death of contributor
- Both spouses are non-residents of Canada
- Direct transfer to another registered account.
Tip: Avoid early withdrawals unless planned with a trusted personal tax advisor in Calgary or wherever you’re located.
Spousal RRSPs & Homeownership
Over-contributing to an RRSP can be costly.
- You get a $2,000 lifetime buffer
- Contributions beyond that incur a 1% monthly penalty
- Must file a T1-OVP return within 90 days of year-end
Work with a tax accountant in Toronto or your local city to avoid excess contribution headaches.
What Happens in a Divorce?
We’re not your typical accountants. We combine decades of experience, modern technology, and a people-first approach to make tax season smooth, simple, and even stress-free.
💼 Small business owner? Ask us how to coordinate your corporate and personal taxes to minimize your total tax burden.
Why Spousal RRSPs Are Smart for Tax Planning in Canada
Spousal RRSPs are one of the most underused tools in tax planning Canada-wide. They’re especially beneficial when:
- One spouse earns significantly more
- One spouse plans to retire earlier
- You want to reduce Old Age Security clawbacks
- You seek predictable retirement cash flow
They work best as part of a long-term financial plan designed by experienced professionals
How Taxccount Canada Can Help
Whether you’re new to RRSPs or already contributing, our experts at Taxccount Canada can help you:
- Maximize tax deductions
- Plan spousal contributions and withdrawals
- Avoid attribution penalties
- Strategically split retirement income
Trusted by Clients Across Canada
From Calgary to Toronto, Canadians turn to us for trusted, compliant, and client-first tax advice.
✔ CRA-compliant filings
✔ Real people, real strategies
✔ Transparent pricing
✔ Personalized retirement planning
📞 Book your free consultation today and discover how spousal RRSPs fit into your retirement plan.


Frenquently Asked Questions
What is a Spousal RRSP and how does it work?
A Spousal RRSP is a retirement account where one spouse contributes to an RRSP in the other spouse’s name. The contributor gets a tax deduction, while the receiving spouse owns the account and pays tax on withdrawals in retirement—often at a lower rate.
What is the 3-year attribution rule for Spousal RRSPs?
If the annuitant (spouse) withdraws funds within 3 calendar years of a contribution, the contributor will be taxed on the withdrawn amount. Planning withdrawals outside this window helps avoid unexpected taxes.
Who benefits the most from a Spousal RRSP in Canada?
Couples where one partner earns significantly more benefit most. It helps split retirement income, reduce the tax burden, and avoid OAS clawbacks.
What is the RRSP contribution limit for 2025?
For 2025, the RRSP contribution limit is 18% of earned income from 2024, up to a maximum of $32,490, plus any unused contribution room carried forward.
Can I use my Spousal RRSP under the Home Buyers' Plan?
Yes, Both spouses can use up to $60,000 from their RRSPs—including spousal RRSPs—towards a first-time home purchase under the Home Buyers’ Plan.
Why should I choose a Downtown Toronto tax accountant?
Spousal RRSPs can be split tax-free during a separation or divorce as part of a legal agreement. Post-separation, contributions to the account must stop.
How can Taxccount Canada help with Spousal RRSP planning?
We provide expert guidance on maximizing tax deductions, avoiding penalties, and creating a retirement plan that fits your family’s financial goals.