Spousal RRSP (Registered Retirement Savings Plan)

Description
A spousal RRSP is an RRSP in which the plan holder's spouse makes contributions on behalf of the plan holder.

Objective
To provide couples with a way to split income in retirement.

Suitability
Any resident under the age of 71 can be the plan holder. The contributing spouse can be older than 71, as long as the plan holder meets the latter suitability requirements.

Features

• Avoid Tax Burden: When the couple retires, if the higher income earner has a pension plan as well as an RRSP, he or she can end up paying much more in income tax than the spouse who earns less. Therefore, it may make sense to open a spousal RRSP for the lower income earner.
• Continue Contributing: Another benefit of the spousal RRSP is that contributors over the age of 71 can continue to contribute to a spousal RRSP until the end of the year the plan holder turns 71. This is an advantage when there is an age gap.
• Conversion: RRSPs must be converted to Registered Retirement Income Funds (RRIFs) by the end of the year you turn 71.
• Account Consolidation: Edward Jones offers you an opportunity to consolidate all of your spousal RRSP holdings into one account. This will allow you to easily monitor your investment strategy. Additionally, you can make this year's contribution at the same time you consolidate your holdings.

For more information, please contact your Edward Jones financial advisor*.