Comments on: Withdrawing From A Spousal RRSP

By: Mike

Mike — Thu, 26 Jan 2012 22:02:10 +0000

Hi
I contributed to a spousal RRSP last year. Am about to contribute this year again.

However, I am planning on leaving the country next year to relocate back to the UK.

Is my wife able to withdraw from the spousal RRSP in 2014 and 2015 respectively as the funds will not have been touched for a 3 year period.
Of course, if she is working, then she wold be taxed on her rate?

Thank you

By: Tax Guy

Tax Guy — Fri, 20 Jan 2012 16:15:15 +0000

Contributions made by you to your wife’s RRSP in this year and the prior 2 will be added to your income to the extent of your contributions.

By: Ron Robins

Ron Robins — Fri, 20 Jan 2012 13:18:14 +0000

My wife and I retired in November 2011. I have paid into a spousal RRSP over the years and in Feb of this year we will cash in $5,000. Who’s income must claim this withdrawl?

By: Tax Guy

Tax Guy — Mon, 14 Mar 2011 21:00:36 +0000

Cris,
Your withdrawal will be taken first from her contribution in 2010, then any made in 2009 or 2008. You don’t get to choose.

By: cris

cris — Mon, 14 Mar 2011 18:11:56 +0000

My wife contributed to a spousal RRSP in the years 2002,2003 and 2004.She did not contribute in 2005/06/07/09.This year she contibuted for 2010.Will this have any effect if i would withdraw the amount contributed in 2002/03/04

By: Tax Guy

Tax Guy — Sat, 05 Mar 2011 16:12:21 +0000

I’m not sure I fully understand your question. The withdrawal will be subject to a withholding tax, which is a prepayment of your income tax and not a penalty.See this article for the withholding tax on RRSP’s.The withdrawal will be added to your income tax and taxed at your marginal tax rate.

By: ken

ken — Sat, 05 Mar 2011 13:16:15 +0000

in what amounts can I withdraw spousal ppsp’s before the tax bracket goes up? Is it$2000, $ 4000( with her consent) or how does this work for the least penalty? I am retired

By: Tax Guy

Tax Guy — Sat, 04 Dec 2010 18:22:18 +0000

Lila,

As long as your husband did not contribute in 2010, 2009, or 2008, there will be no attribution back to him. The withdrawal should be taxed in your hands and as long as your income total taxable income including the withdrawal is under $10,000, then you will not pay tax.

You need to consider the impact on the spousal tax credit. Every dollar you earn, your husband loses the tax credit at the federal and provincial rates. So while, you withdraw tax-free, he will lose the tax credit equal to your withdrawal. I don’t see any benefit if the withdrawal is only for tax purposes.

By: Lila

Lila — Fri, 03 Dec 2010 20:30:57 +0000

Hi,

I have some money in my spousal RRSP a/c. This amount was contributed by my husband before 2004. Now I have only limited income for 2010. If I withdraw 10,000 from my spousal RRSP will it be taxable? How does it work? Please advise.

By: Tax Guy

Tax Guy — Mon, 13 Sep 2010 00:56:36 +0000

If you withdraw, you’ll never get the contribution room back.

Your contribution limit is 18% of the prior years earned income to the annual maximum.