It is very hard to find blogs and websites acknowledging that you AND your spouse can contribute to a spousal RRSP. They all talk from the perspective of you alone contributing and your spouse withdrawing.
Here is where I screwed up. I'm retired but my wife is still working. Her main RRSP is a spousal RRSP. I stopped contributions years ago.
But, she made her last contribution this month.
I misunderstood that as long as I stopped contributions then when she withdraws it will be taxed in her hands. I just learned that she also had to have stopped contributions.
That seems a stupid rule to be honest and I'm not surprised I was confused because of the way spousal RRSPs are talked about in the blogosphere.
Don't screw it up like I did... And bloggers, here is your chance to set things straight by being loud and clear.
I guess there is no way for us to back out her contribution this year, right?