How do Spousal RRSPs work?
A spousal RRSP allows you to contribute money to your spouse or common-law partner's registered retirement savings plan, up to your personal contribution limit.
When a contribution is made to the spousal RRSP, the contributor receives a tax deduction.
This can help you balance your income as a couple and works best when a large disparity exists between you and your spouse's income.
By contributing to a Spousal RRSP, the higher-earning spouse receives a tax deduction that could lower their personal tax bill for the year.
On the other hand, the lower-earning spouse should get taxed at a lower marginal tax rate when the money is withdrawn from the Spousal RRSP. This means potentially paying less tax on your Spousal RRSP assets at retirement.
See Also
Spousal RRSP