Spousal RRSPs allow one spouse to ________ the plan; the other spouse is the ________.

Question

Quizplus · Accepted Answer

Spousal RRSPs allow one spouse to contribute to the plan; the other spouse is the beneficiary. This enables the couple to equalize their retirement income, as the contributions and eventual withdrawals are taxed in the hands of the spouse who holds the plan. This can result in tax savings if the contributing spouse is in a higher tax bracket during the contribution years, and the beneficiary spouse is in a lower tax bracket at the time of withdrawals.

Spousal RRSPs Allow One Spouse to ________ the Plan; the Other