How a spousal RRSP can save couples tax

Doug writes in with a simple question: can he put some of his contribution room into his own RRSP and some into his spouse's, and does each account get its own deduction? Allan explains that a single limit covers both, so the room cannot be doubled up. He then looks at why spousal RRSPs have become less common since pension income splitting arrived in 2007, yet may still help couples even out income when one partner earns much more. The column covers the waiting period before withdrawals are taxed to the spouse, why the timing of a contribution around year end can matter, and how a spousal RRIF minimum is treated differently. It also describes situations where the account may be most useful, including retiring before 65, a low income year for one spouse, and a meaningful age gap between partners.