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RRSP Strategies: Contribute to your spouse's RRSP

You have the right to pay money in the RRSP of your spouse and to deduct the contribution from your income. This allows a distribution of the income because the withdrawn sums of the RRSP will be included in the income of your spouse and not in yours. If your spouse is younger than you, this strategy will make it possible to accumulate incomes and carryforward the tax for a longer period.

Your contribution must remain in the RRSP of your spouse at least until the third calendar year according to the year of the last contribution made for your spouse; otherwise, the withdrawl will be included in your income.

 

Use your surplus contribution of 2000$

 

You are entitled to a surplus contribution of 2000$ in addition to the usual maximum contribution to your RRSP for the year. The surplus contribution is not deductible from your income, but it is to your advantage that you use it because income tax drawn from the additional 2000$ will be differed while the money is in your mode.

A surplus of contribution this year will be deductible in one future year in the case that you will have the rights of contribution in your RRSP in that year.

 

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