Share, Split & Combine for Spousal Tax Savings - Tip #1
This is the first of a 5-part financial tips series focusing on tax savings opportunities and strategies for spouses.
Spousal Tax Savings Tip #1 - Split Income With Your Spouse
As withdrawals from all registered plans are taxable, minimizing the tax associated with the withdrawal should be the goal of all savers. One of the best ways to accomplish this is through the use of a spousal RSP, which allows a spouse in a higher tax bracket to allocate a future tax liability to a spouse in a lower tax bracket. While Canadians have been able to split pension with their spouse's since s008, they can only split income from a RRIF or from an RSP annuity provided the recipient spouse is over the age of 65 (a senior citizen). Thus for those Canadians who plan to retire or semi-retire before normal retirement age, spousal plans can still be advantageous
In The Series:
Courtesy of Marta Stiteler, MA CFP CIM CLU, Financial Planner at Pillar Retirement Group/Worldsource Financial Management Inc.
Marta can be reached at: Pillar Retirement Group, 50 Coreslab Drive, Flamborough ON L9H 0B2. T: 905-690-5038 E: firstname.lastname@example.org
The information provided herein is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting, or professional advice. Readers should consult their own subject matter experts for advice on the specific circumstances before taking any action. This information has been obtained from sources, which we believe to be reliable, but we cannot guarantee its accuracy or completeness. Worldsource Financial Management Inc. does not assume any liability for any inaccuracies in the information provided. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual Funds and some Segregated Funds are offered by Marta Stiteler through Worldsource Financial Management Inc. while other products and services are offered through Marta Stiteler.