SpousalRsp

A higher-earning spouse who contributes to a Spousal Registered Savings Plan (RSP) can reduce his or her taxes now, and the couple�s combined taxes after retirement. Each tax year, the higher earning spouse makes the spousal contribution and claims the deduction.

After retirement, the lower-earning spouse will likely be able to withdraw the RSP proceeds and pay less tax than if one spouse received the bulk of the couple�s retirement income.

You can contribute to both your RSP and a Spousal RSP, although total contributions cannot exceed your available RSP contribution room. Your spouse�s own RSP contribution limit is not affected by your contributions to a spousal plan.

Remember, however, that by contributing to a spousal RSP your contribution becomes the property of your spouse.

This page is part of the GayFinance series.