Summary
The spousal RRSP should be entered under the spouse who will be the "annuitant" (the owner of the RRSP), not the contributor. The contributor (the other spouse) is set as the one making the contributions, and the system will use their RRSP room (using the Spousal RRSP Contribution Toggle).
This setup ensures that withdrawals in the future are attributed to the annuitant (the spouse who owns the RRSP) for tax purposes.
Step 1: Confirm the Annuitant Has an RRSP in the Evaluation
Ensure the spouse who will own the spousal RRSP (the annuitant) has an RRSP account selected in the evaluation.
This ensures the system recognizes the account as eligible for spousal contributions.
Step 2: Add the Spousal RRSP Under the Annuitant
Navigate to Savings → Canadian Registered Accounts and create the RRSP under the spouse (annuitant).
When creating the account:
Set Account Type to RRSP
Set RRSP Type to Spousal RRSP
Enter the account balance and institution if applicable
Important: The annuitant owns the account, even though the other spouse will contribute.
Step 3: Ensure RRSP Room Is Entered for Both Spouses
Enter each spouse’s RRSP deduction limit and contribution data in the tax/registered account section.
When spousal contributions are made:
The contributor’s RRSP room is used
The funds accumulate in the annuitant’s RRSP
This reflects how spousal RRSPs work in practice.
Step 4: Create a Spousal RRSP Contribution Toggle
To model contributions, create a new Savings/Investments toggle with:
Toggle Type: Spousal RRSP Contribution
Account: select the annuitant’s Spousal RRSP
The toggle assigns the contributing spouse automatically and deducts from their RRSP room.
Note on excess/deficiency treatment:
Excess cash flow deposits: spousal RRSPs are not included automatically
Deficiency withdrawals: spousal RRSPs are included with other RRSPs
So if the goal is to model ongoing spousal RRSP funding, it should be done through the Spousal RRSP Contribution toggle rather than relying on excess cash flow logic.
Step 5: Result in the Plan
With this setup:
Contributions come from the contributor’s RRSP deduction room
Assets grow inside the annuitant’s RRSP
Future withdrawals are attributed to the annuitant for tax purposes