Spousal RRSP
Spousal RRSP
Grow Together, Save for Tomorrow
Broadmoor specializes in spousal RRSP services, leveraging Canadian tax laws to maximize retirement savings.
We assist couples in strategically contributing to each other’s RRSPs, optimizing tax benefits and building a secure financial future together. Trust us to navigate the complexities with expertise and tailored solutions
Adherence to Laws
Our services compliant with federal and provincial tax laws, including Income Tax Act and relevant legislation
What it includes
- Contribution: A higher-earning spouse contributes to a Spousal RRSP in their partner’s name, utilizing their own contribution room.
- Tax Deduction: The contributing spouse claims the tax deduction, reducing their taxable income for the year of contribution.
- Ownership: The receiving spouse owns the funds in the Spousal RRSP, controlling withdrawals and investments upon retirement.
- Income Splitting: During retirement, withdrawals from the Spousal RRSP are taxed in the lower-earning spouse’s hands, potentially reducing overall taxes.
- Retirement Income: Spousal RRSPs provide retirement income for both spouses, promoting income splitting and tax efficiency in retirement years.
benefits to you
- Income Splitting: Spousal RRSPs enable income splitting, lowering overall tax liability by distributing retirement income more evenly between spouses.
- Retirement Security: Both spouses build retirement savings, ensuring financial security and stability for the household during retirement years.
- Tax Efficiency: Spousal RRSP contributions reduce the higher-earning spouse’s taxable income, potentially resulting in immediate tax savings.
- Pension Equalization: Spousal RRSPs help equalize retirement incomes, particularly beneficial if one spouse has a higher pension or income.
- Estate Planning: Spousal RRSPs facilitate estate planning, allowing for seamless wealth transfer and potential tax advantages upon the death of a spouse.
- Flexibility: Spousal RRSPs offer flexibility in retirement income planning, allowing couples to adjust withdrawals based on their tax situation and financial needs.
How we work
Understanding Client Needs
Consult with clients to grasp their requirements, goals, and preferences, ensuring alignment with their financial strategies.
Implementing Efficient Systems
Introduce easy-to-use tools and processes tailored to client needs, promoting accuracy, compliance, and streamlined operations.
Providing Feedback and Support
Offer continuous assistance, communication, and training to ensure clients effectively utilize systems and address any concerns.
What we will deliver to our clients
- Expertise in federal Income Tax Act regulations governing spousal RRSP contributions, withdrawals, and taxation.
- Adherence to provincial regulations regarding spousal RRSP-related matters, ensuring compliance with specific provincial laws.
- Assistance with spousal RRSP contribution limits and eligibility criteria as outlined by the Canada Revenue Agency (CRA).
- Guidance on spousal RRSP investment options, tailored to meet couples' financial goals and risk tolerance.
- Compliance with CRA guidelines regarding spousal RRSP contribution deadlines and reporting requirements.
- Review of spousal RRSP attribution rules to optimize tax advantages for couples.
- Evaluation of spousal RRSP withdrawal strategies, including considerations for income splitting in retirement.
- Assistance with spousal RRSP beneficiary designations and estate planning considerations.
- Provision of customized spousal RRSP solutions to maximize retirement savings and tax benefits.
- Collaboration with legal and financial professionals to provide comprehensive spousal RRSP services.
- Transparent communication regarding spousal RRSP tax implications, including tax-deferred growth and taxable withdrawals.
- Proactive monitoring of legislative changes and updates to spousal RRSP-related laws and regulations.
