Comments on: The Spousal RRSP – One of the Most Overlooked Strategies! http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/ A personal finance blog written by Preet Banerjee Fri, 25 May 2012 08:03:33 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Preet http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-11345 Preet Mon, 12 Dec 2011 22:49:25 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-11345 Yes: http://wheredoesallmymoneygo.com/you-can-make-spousal-rrsp-contributions-after-age-71/ Yes: http://wheredoesallmymoneygo.com/you-can-make-spousal-rrsp-contributions-after-age-71/

]]> By: jer http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-11344 jer Mon, 12 Dec 2011 22:26:43 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-11344 If someone is 72 and already converted their RRSP to a RIF but is continuing to earn income, is it possible to contribute to a spousal RRSP of a younger spouse? If someone is 72 and already converted their RRSP to a RIF but is continuing to earn income, is it possible to contribute to a spousal RRSP of a younger spouse?

]]> By: Donna http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10797 Donna Thu, 01 Dec 2011 16:35:58 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10797 Hi Preet. Husband passed away in 2011. It is my understanding that as Executor of his estate that I can make an RRSP contribution on his behalf into my spousal RRSP in an amount up to his max 2011 deduction limit. However, if he has Unused RRSP limits carried forward, can I make additional RRSP contribution to my spousal Plan or is that amount lost on death? Hi Preet.
Husband passed away in 2011. It is my understanding that as Executor of his estate that I can make an RRSP contribution on his behalf into my spousal RRSP in an amount up to his max 2011 deduction limit. However, if he has Unused RRSP limits carried forward, can I make additional RRSP contribution to my spousal Plan or is that amount lost on death?

]]> By: Preet http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10760 Preet Thu, 01 Dec 2011 05:15:59 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10760 Always best to double check with your plan administrator, but generally in my experience your spouse would have to contribute to his or her own non-spousal RRSP as administratively, when they deposit money and issue a receipt, whomever is listed as the contributor on the form you signed to open up the account is the name on the tax slip. Always best to double check with your plan administrator, but generally in my experience your spouse would have to contribute to his or her own non-spousal RRSP as administratively, when they deposit money and issue a receipt, whomever is listed as the contributor on the form you signed to open up the account is the name on the tax slip.

]]> By: Mark Spurrell http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10727 Mark Spurrell Wed, 30 Nov 2011 18:19:53 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10727 Hi Preet, I have a question regarding contributing to a spousal RRSP. I can contribute to a spousal RRSP based on my deduction limit. I get the deduction and the plan belongs to my spouse. I understand this; however, if my spouse wanted to make RRSP contributions, can she make them to this spousal RRSP as regular contributions from her? Thanking you in advance, Mark Hi Preet,

I have a question regarding contributing to a spousal RRSP. I can contribute to a spousal RRSP based on my deduction limit. I get the deduction and the plan belongs to my spouse. I understand this; however, if my spouse wanted to make RRSP contributions, can she make them to this spousal RRSP as regular contributions from her?

Thanking you in advance,

Mark

]]> By: Preet http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10629 Preet Tue, 29 Nov 2011 06:13:41 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10629 Hi Fred, From a tax perspective the writing off of interest on the investment loan is a separate issue from the tax owing on deregistered funds from an RRSP. It won't matter where you pull the deregistration of funds from (your RRSP or spousal RRSP) as each dollar, no matter the account source, will be seen as ordinary income. So if the tax saved on the loan interest is equivalent to the tax owed on the deregistration of RRSP funds, they'll cancel out. As for the overall strategy, as always I just suggest that you take time to understand the risks. An interest only mortgage is riskier than paying down the principal. Also, note that all the calls of a frothy real estate market in Canada means you should project how the strategy fairs IN CASE there is a real estate correction in Canada - to at least manage your expecatations. Hope this helped a bit. Hi Fred,

From a tax perspective the writing off of interest on the investment loan is a separate issue from the tax owing on deregistered funds from an RRSP. It won’t matter where you pull the deregistration of funds from (your RRSP or spousal RRSP) as each dollar, no matter the account source, will be seen as ordinary income. So if the tax saved on the loan interest is equivalent to the tax owed on the deregistration of RRSP funds, they’ll cancel out.

As for the overall strategy, as always I just suggest that you take time to understand the risks. An interest only mortgage is riskier than paying down the principal. Also, note that all the calls of a frothy real estate market in Canada means you should project how the strategy fairs IN CASE there is a real estate correction in Canada – to at least manage your expecatations.

Hope this helped a bit.

]]> By: Preet http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10628 Preet Tue, 29 Nov 2011 06:06:33 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10628 Hi Sonya, sorry for the delayed response! The company should be able to amend the contribution receipt if they indicated that this was allowable, but normally you will need to make a contribution to your own non-spousal RRSP. Remember that you can carry forward claiming the deduction for the already made contribution if an increase in the tax bracket of the contributor is expected in the near future. Hi Sonya, sorry for the delayed response! The company should be able to amend the contribution receipt if they indicated that this was allowable, but normally you will need to make a contribution to your own non-spousal RRSP. Remember that you can carry forward claiming the deduction for the already made contribution if an increase in the tax bracket of the contributor is expected in the near future.

]]> By: Fred from Calgary http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10581 Fred from Calgary Mon, 28 Nov 2011 18:10:02 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-10581 Hi Preet, Veeerrry interesting articles, thanks for all the work that you've done for 'us', your readers. My question: What would be your advice with regard to purchasing a rental property as an investment, (house, SxS, etc), so, one would take out a loan or mortgage, (possibly, interest only), buy a house, collect the rent, pay off the house, melt down the rrsp, etc. Or, the rent would pay the principal portion of a mortgage, RRSP withdrawals to pay the interest. The house would eventually be clear title and resulting in a nice cash stream. Second quiry: how would our spousal rsp and my reg rsp get 'pooled' so that we could have one big meltdown; how would one need to be on title so as to have the taxes done properly, etc. I am currently retired with a DB at 57 years, will not pull from rsp for 15 years. Wife works. Yes, quite complicated, I know. Thanks for the time and advice, if you deside to tackle this one. It would make a very good article, don't you think? Keep smilin', Fred Hi Preet, Veeerrry interesting articles, thanks for all the work that you’ve done for ‘us’, your readers.
My question: What would be your advice with regard to purchasing a rental property as an investment, (house, SxS, etc), so, one would take out a loan or mortgage, (possibly, interest only), buy a house, collect the rent, pay off the house, melt down the rrsp, etc. Or, the rent would pay the principal portion of a mortgage, RRSP withdrawals to pay the interest. The house would eventually be clear title and resulting in a nice cash stream.

Second quiry: how would our spousal rsp and my reg rsp get ‘pooled’ so that we could have one big meltdown; how would one need to be on title so as to have the taxes done properly, etc.

I am currently retired with a DB at 57 years, will not pull from rsp for 15 years. Wife works.

Yes, quite complicated, I know. Thanks for the time and advice, if you deside to tackle this one. It would make a very good article, don’t you think?

Keep smilin’, Fred

]]> By: Sonya http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-7805 Sonya Thu, 07 Apr 2011 17:44:00 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-7805 Hi Preet, I contributed to my own spousal RRSP in sept 2010 even though i am the annuitant. the receipt has come with my spouse showing as the contributor ( since he is written as the contributor on the account). Is there any way I can claim it for myself still? the company i invested with initially said that it doesn't matter who claims it as long as both names are on the receipt but now i know that is not true. What can I do in such a situation? Hi Preet,

I contributed to my own spousal RRSP in sept 2010 even though i am the annuitant. the receipt has come with my spouse showing as the contributor ( since he is written as the contributor on the account). Is there any way I can claim it for myself still? the company i invested with initially said that it doesn’t matter who claims it as long as both names are on the receipt but now i know that is not true. What can I do in such a situation?

]]> By: Preet http://wheredoesallmymoneygo.com/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-7543 Preet Thu, 24 Feb 2011 14:06:21 +0000 http://symbiantcapital.com/2007/12/23/the-spousal-rrsp-one-of-the-most-overlooked-strategies/#comment-7543 @Peter - sorry for the delayed response, however your question is fully answered in the post. @Peter – sorry for the delayed response, however your question is fully answered in the post.

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