What are the tax benefits of contributing to my wifes RRSP?
It is an excellent way to split income between spouses. You get the same deduction as when you contribute to your own RRSP, but the deduction is subject to your own RRSP contribution limit, not your wife’s. The RRSP will belong to your wife, so when the money is withdrawn, she will have to report it as income. To summarize, you get the deduction but she reports the income. However if a spousal RRSP is withdrawn during the year purchased or the preceding two years, the income is attributed back to the contributor to the extent contributions were made to any spousal RRSP.
