If your RRSP portfolio is greater than your spouse’s RRSP portfolio, contributing to your spouse’s RRSP plan (instead of yours) can make good financial sense.

Not only do you still reduce your taxable income for the year, when it comes time for your investment to be cashed out in the future, there is a greater likelihood that it will be redeemed at a lower tax rate than if it was included in your portfolio.

Your investment goal should be to have both plans as equal as possible in value (at time of redemption) to avoid having one of the portfolios taxed at a significantly higher rate. For more information please contact your Credential Financial Strategies Inc., C Finance, or Caisse investment advisor.

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