Do You Still Need a Spousal RRSP for Income Splitting?

Yes. Yes you do! A financial adviser said to me a couple of years ago that there was no need for us to setup a spousal RRSP since we now had pension income splitting in Canada. It turns out that advice is not very good. Spousal RRSPs are absolutely still necessary in order to have income splitting options available when it comes time to withdraw. What is a spousal RRSP? A spousal RRSP is just like a regular RRSP except contributions are made by the spouse, not the account holder. The spouse of the account holder claims the deduction on their…
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