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I think the answer is yes, but want to make sure. I earn 10x the annual income my wife does, $250k vs $25k. I have $570k invested, she has $130k. We plan to retire in 10 years. We max out our registered investments every year (she pays into pension).

It seems like a no-brainer, but I do get a good amount of tax back every year, and I assume this would reduce the amount I get back for every year I do this (vs contribute in my own name), but that's more than offset come retirement draw down. Short term loss, long term gain?

Thoughts appreciated :)
 

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As Money said, changing your RRSP contribution to a spousal RRSP vs your own will not change your tax credit (deduction) but it puts more eventual assets and consequently investment income into the hands of a lower income spouse at an eventual lower tax rate post-retirement. A form of income splitting in effect. This is almost always a good idea especially with highly disparate incomes. Grab it while you can over the next 10 years.
 

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It seems like a good idea to me. One question is if the spouse is paying into a pension would that limit her RRSP room?
 

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It seems like a good idea to me. One question is if the spouse is paying into a pension would that limit her RRSP room?
Yes, it would limit her room, but in this scenario it doesn’t really matter, as it is his RSP room that will be impacted contributions he makes to her account.

I’d try to plan so the RSP balances are roughly the same size by retirement (and adjust downward for any potential future pension income). i think once the accounts become a RIFs, its all moot as income can be split then.

its good though if you plan on retiring early and drawing on the RSP before RIF conversion as stated in the article above.
 
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