Can my spouse join SPP?

September 13, 2012

By Sheryl Smolkin

If both you and your spouse have individual RRSP contribution room of at least $2,500, each of you can contribute up to the annual maximum to your own Saskatchewan Pension Plan accounts. You can also each transfer $10,000 a year from individual RRSPs to your personal SPP accounts.

However, if you have sufficient RRSP room and your spouse does not, your spouse can open an SPP account to which you are the contributor. You can contribute up to $5,000/year in total ($2,500 for each of you) into the two accounts and get a tax deduction for the whole amount.

When it comes to RRSP transfers to SPP, your spouse can only make a transfer from an RRSP in his/her own name. You cannot make a $10,000 transfer from your RRSP to your partner’s spousal account.

Two major advantages of a spousal SPP account are that you can contribute double the amount each year and income split at retirement. Also, if both of you elect annuity options and one of you dies first, the surviving partner will still have a stream of income.

Also check out:

Derek Foster: Idiot Millionaire CBC Radio Saskatoon interview – August 13, 12

A pension solution for your business Saskatchewan Broker – Winter 2011

Roseman: Want to save tax? Look to SPP Moneyville.ca – March 6, 2012

financial planning, Retirement Income, Save for retirement

---

---