Overview
Annuitants can open a managed and self-directed investing Spousal Registered Retirement Saving Plan (RRSP) with Wealthsimple.
You can open
- many managed Spousal RRSPs
- one self-directed Spousal RRSP
More about Spousal RRSPs
A Spousal 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.
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
*Technically the income tax act permits annuitant contributions to Spousal RRSP, however, Wealthsimple does not have the functionality to support them. Only some financial institutions support this, most do not.
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. You can’t open the account on the mobile app.
The annuitant can follow the steps below to open a Spousal RRSP:
- Log in to your Wealthsimple profile
- From the Home page, select + Add an account
- Choose Spousal RRSP from the options
- Follow the prompts to open the account
Contribute to a spousal RRSP
Contributors can make a deposit into a spousal RRSP using one of the methods below:
- Transfer funds from an individual or joint Cash 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, and so one cannot be converted into another.
What are the fees in a Spousal RRSP with Wealthsimple?
Learn more about fees in managed and self-directed accounts.
How long after I put funds into my account are they invested for me?
Once you make a deposit to a managed account, it takes up to 3 days to invest your funds.
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.
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