Spousal RRSP: Contribution and Withdrawal Rules

Many Canadians use a registered retirement savings plan, or RRSP, to save for retirement. A spousal RRSP is a version of this registered account designed for married couples and common-law partners. Depending on the couple’s financial situation, a spousal RRSP can have a huge impact on their shared tax burden.

What is a spousal RRSP?

A spousal RRSP is a registered retirement savings plan that is owned by one person — the annuitant or plan holder — but holds funds contributed by their spouse or common-law partner, who is known as the contributor.

Spousal RRSPs are particularly advantageous for couples where one partner makes significantly more than the other, and for couples where one partner is likely to be in a higher tax bracket than the other when they retire. They can also be useful for couples with an age and income gap — the higher-income partner can’t contribute to their own RRSP after Dec. 31 of the year in which they turn 71, but they can keep contributing to a spousal RRSP until their spouse turns 71.

For example, let’s say one spouse earns a high income and contributes regularly to their own RRSP, while the other is a stay-at-home parent. This could create a situation in which the first partner has a significant amount saved in their RRSP but pays a higher income tax rate, whereas the partner who stays home may not pay much income tax but also may not have much in their RRSP. In retirement, they will have very different incomes, since they will be withdrawing more money from one partner’s RRSP – and paying a higher tax rate on that income.

If the higher-earning partner contributes to a spousal RRSP in the lower-income partner’s name, they get to take the tax deduction on their own return — lowering their taxable income. This strategy could help the couple save for retirement in a more balanced manner. It can also lead to lower combined taxes when they start withdrawing funds in their retirement years than if all their retirement savings were under one’s person’s name.

How spousal RRSPs work

Most major financial institutions offer spousal RRSPs.

When you open the account, you’ll specify which partner is the contributor and which is the annuitant, a fancy word for recipient. Even though the contributor provides the funds, the annuitant owns the account and makes the investment decisions. They’re also the only person allowed to withdraw money from the account.

Contributions to a spousal RRSP count toward the contributor’s RRSP deduction limit, and don’t affect the annuitant’s deduction limit. It’s important for the contributor to make sure contributions to their own RRSP and the spousal RRSP don’t add up to more than their contribution room, or they’ll face RRSP over-contribution penalties.

Spousal RRSP vs. personal RRSP

A personal RRSP and a spousal RRSP are two different accounts. You can have both, whether you’re the contributor or the annuitant. For example, if you’re the higher-earning spouse, you can contribute to both your own personal RRSP and a spousal RRSP in your partner’s name. Your partner can also have their own personal RRSP. These RRSP accounts can be at different financial institutions of your choosing, or you can keep all your accounts at the same institution.

However, you have only one pot of RRSP contribution room, which is based on the income you earned in the previous year plus any unused contribution room from prior years. You can find your RRSP contribution room in your CRA My Account or on your notice of assessment.

You can allocate that contribution room however you’d like between the two accounts, but be careful not to go over the limit. For example, if you have $10,000 of RRSP contribution room, you could contribute $5,000 to each plan, or you could contribute any combination of amounts that add up to $10,000 or less.

Spousal RRSP contribution rules

Spousal RRSP contribution limits are determined by the contributor’s overall limit. Opening a spousal RRSP does not give you additional contribution room.

RRSP contribution room is based on 18% of your previous year’s earned income, up to $32,490 for 2025. Any unused contribution room gets carried forward to future years.

Spousal RRSP withdrawal rules

By Dec. 31 of the year in which you turn 71, you must choose one of three options for any RRSPs in your name – including a spousal RRSP. Your options include:

Withdrawals will trigger a significant withholding tax, which you won’t pay if you purchase an annuity or transfer the funds directly to an RRIF.

If you transfer your spousal RRSP to an RRIF, you’ll then have to withdraw a minimum amount based on your age, which will be taxed at your marginal tax rate.

Early withdrawals from a spousal RRSP are allowed, but a three-year attribution rule applies. To avoid having the withdrawal taxed as part of the contributor’s income, the annuitant has to wait the remainder of the calendar year plus two full years after the last contribution before withdrawing funds.

Let’s say you contributed to a spousal RRSP in March 2025. Your spouse would have to wait until 2028 to make any withdrawals if you want the funds to be taxed as part of their income. If you made any additional contributions in 2025, 2026 or 2027, the clock would reset and you’d start the three-year wait again.

Contributors are not required to claim their spouse’s withdrawals as income in the following situations:

Spousal RRSPs can be complicated. If you think one might be useful for you and your partner, it’s a good idea to speak with a financial professional who can explain how the benefits and drawbacks may apply to your situation.

Benefits and drawbacks of a spousal RRSP

Like any retirement savings strategy, contributing to a spousal RRSP comes with advantages and disadvantages.

Benefits of a spousal RRSP

Drawbacks of a spousal RRSP