Tax-free accounts
How a Spousal RRSP Works in Canada
A spousal RRSP lets the higher earner contribute to an RRSP owned by their spouse or common-law partner, take the deduction, and split retirement income. The contribution room rules and the 3-year withdrawal rule.
What is a spousal RRSP?
An RRSP owned by your spouse or common-law partner that you contribute to. You claim the tax deduction; your partner owns the money and pays the tax when it is withdrawn in retirement.
It is useful when one partner earns much more than the other: moving future withdrawals to the lower-income partner can lower the couple’s total tax in retirement.
Put it into practiceRRSP limit and deadline 2026Whose contribution room does a spousal RRSP use?
Yours, the contributor’s. Your deduction for contributions to your own RRSP and your partner’s spousal RRSP together cannot exceed your RRSP deduction limit. The 2026 dollar limit is $33,810.
Your partner’s own room is not affected, so they can still contribute to their own RRSP.
What is the spousal RRSP 3-year rule?
If your partner withdraws money from a spousal RRSP and you contributed to any spousal RRSP for them in that year or the two previous years, all or part of the withdrawal can be taxed as your income instead of theirs.
For example, contributions made in 2024, 2025 and 2026 can cause a 2026 withdrawal to be taxed back to you. To avoid it, stop contributing to the spousal plan for three calendar years before your partner withdraws. Exceptions exist, such as separation; see CRA guide T4040.
Can I contribute to a spousal RRSP after 71?
Yes, if you still have contribution room and your spouse or common-law partner is 71 or younger at the end of the year. That can let an older partner keep using their room.
Do I still need a spousal RRSP with pension income splitting?
Often yes. Pension income splitting lets couples split eligible pension income, including RRIF income from age 65, but a spousal RRSP can help before 65 and is not limited to half of the income.
Keep reading
Tax-free accountsRRSP Contribution Limit and Deadline 2026The 2026 RRSP limit is 18% of your 2025 earned income, up to $33,810. The deadline to contribute for the 2026 tax year is March 1, 2027.- Tax-free accountsWhat Happens If You Overcontribute to Your RRSP in Canada?You can go up to $2,000 over your RRSP deduction limit without penalty. Above that, the CRA charges 1% a month on the excess until you withdraw it or new room absorbs it.
Tax-free accountsRRIF Minimum Withdrawals in CanadaYou must convert your RRSP by the end of the year you turn 71, and a RRIF then requires a minimum withdrawal every year. The CRA percentages by age, with examples on $100,000 and $500,000.- Tax-free accountsTFSA Contribution Limit 2026The 2026 TFSA limit is $7,000. Total room for someone eligible since 2009 is $109,000. Every year’s limit, how room works, and where to hold your TFSA.
Official sources and further reading
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