Maxed TFSAs: Better to contribute to my RRSP or a Spousal RRSP?
Hey everyone, looking for some advice on the most tax-efficient move for our situation.
Context:
TFSAs: Both mine and my wife’s are fully maxed out.
I am the sole earner (~$63k/year). My wife has no income and has never been employed in Canada, so she has $0 RRSP contribution room of her own.
I have significant RRSP contribution room available.
Since she doesn't have her own room, I know I can't contribute to her personal RRSP. However, I’m looking into a Spousal RRSP.
Is it better to just put the money into my own RRSP, or should I open and contribute to a Spousal RRSP for her?
If I use a Spousal RRSP, am I correct that the deduction still applies to my taxable income (reducing my tax bill today), but the money belongs to her for future withdrawals?
Are there any major "attribution rules" or traps I should be aware of (like the 3-year rule)?