What is the maximum contribution to my wife’s RRSP that I can deduct? If that money is withdrawn this year, how much will she get taxed?
The maximum an individual may deduct on their tax returns is limited by the RRSP deduction available for the year, regardless if it’s split with a spouse. Your wife can set up a spousal RRSP and you can make contributions, provided you have the room.
Withdrawals by your spouse from a spousal RRSP where contributions were made in the year or either of the two preceding years will be attributed back to the original contributor and taxed in the original contributor’s