The tax paid when cashing in retirement is
based on the rate of taxation of those who withdrew. As tax
rates are lower for lower income, net income of the couple would
be better if each spouse earns income retirement rather than
having only one spouse taxed on total retirement income.
Distribute the assets of the couple
Maybe you're sensitive to the idea of
reducing financial dependence on your spouse.
In Quebec, the family patrimony included the
accumulation in an RRSP during the marriage. Event of a divorce,
your RRSP will be shared with your spouse regardless of your
marital regime. This rule does not apply to common-law partner.
In case of death, your survivor will avoid the tax
disadvantages that may affect RRSP. See
Death.
Disadvantages
The contributions that the contributor pays
the spousal RRSP reduces the amount that the contributor may
make his own RRSP.
Withdrawals
If your spouse withdraws an amount from your
RRSP under two years after your contribution, you will be taxed
on withdrawal.
This rule does not apply in the case of divorce, death or
change of status to that of non-resident.