In this article:
Overview
A spousal Registered Retirement Savings Plan (RRSP) is an RRSP that can help lighten the tax load for couples with a big income disparity. It helps you pool your retirement savings so that the higher-income earner doesn’t have a large pile of retirement savings in their RRSP while the lower-income earner has a small pile.
Each person has a different role in a spousal RRSP. One person is the annuitant and the other person is the contributor.
Tip: Before you begin, identify the annuitant and contributor for your spousal RRSP.
Annuitant
- The primary account owner
- Usually the partner that earns less income
- Typically* not able to make contributions to the account
- Able to make withdrawals from the account
Contributor
- The secondary account owner
- Usually the partner that earns more income
- Able to make contributions to the account, and therefore gains the tax benefits
- Not able to make withdrawals from the account
- Not able to trade
*Technically the Income Tax Act permits annuitant contributions to spousal RRSPs, however, Wealthsimple doesn't have the functionality to support them. Only some financial institutions support this; most don't.
How to open a spousal RRSP
The annuitant and contributor each need a separate Wealthsimple profile to open a spousal RRSP. The annuitant must open the account from their own Wealthsimple profile on the Wealthsimple website.
The annuitant can follow the steps below to open a spousal RRSP:
- Log in to the Wealthsimple app
- From the Home tab, scroll down and tap Add or move account
- Tap Open a new account
- Tap RRSP from the account options
- Tap Stocks, options, and ETFS
- Tap You and your spouse
- Follow the prompts to open the Spousal RRSP
- Log in to your Wealthsimple profile
- Select + Add an account from the Home page
- Select the Investing tab
- Choose Spousal RRSP from the options
- Choose what you'd like to invest in
- Select Next
- Follow the prompts to open the account
What you can invest in with a spousal RRSP
You can invest a spousal RRSP in a variety of Wealthsimple products:
- Self-directed investing
- Managed investing
Contribute to a spousal RRSP
Contributors can deposit into a spousal RRSP using one of the methods below:
- Transfer funds from an individual or joint chequing account
- Deposit using a linked debit card
- Deposit using Interac e-Transfer®
Frequently asked questions
Why is my SIN required to open an account with Wealthsimple?
All registered accounts (such as a TFSA or RRSP) must be registered with the CRA. In order to register these accounts with the CRA, we require your SIN. Additionally, all non-registered accounts require that we verify your identity with a third-party credit reporting agency to follow FINTRAC identity verification rules, which also requires your SIN.
Can I convert a personal RRSP into a spousal RRSP?
No. Personal RRSPs and spousal RRSPs have different withdrawal considerations. You can't convert one to another.
How does my secondary owner sign off on their account opening agreements?
If your secondary owner does not already have a Wealthsimple account, they will need to set one up. When you add their email during the account setup, a “shell” account is created for them. A password reset email is also sent to them, and they can log in to this shell account and set up their profile after resetting their password. Once their profile is set up, they can Review agreements under the spousal RRSP to sign off on the agreements.
If your secondary owner already has a Wealthsimple account, they can log in to their Wealthsimple profile and Review agreements under the spousal RRSP to sign off on the agreements.
How do I roll over my spousal RRSP into a spousal RRIF?
To roll over a spousal RRSP to an RRIF, please follow the instructions to roll over your spousal RRSP to a spousal RRIF.
How many spousal RRSPs can I open?
- You can open as many Wealthsimple Portfolio RRSPs as you'd like.
- You can open up to 8 self-directed RRSPs.
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