Forms & Schedules, RRSP

T2205 Tax Form: Include Spousal RRSP Withdrawals in Income in Canada

What is the T2205 tax form?

It is called Amounts from a spousal RRSP or RRIF to include in income. In most cases, you use it because of a spousal RRSP withdrawal.

What is a spousal RRSP or RRIF?

It is a Registered Retirement Savings Plan or a Registered Retirement Income Fund to which your spouse or common-law partner contributes for you. Those plans are designed for long-term savings for retirement. The amount your spouse contributes has to stay in the plan for at least three years. If you withdraw it within three years, your spouse will have to include the amount in his or her taxable income.

What happens if I have had an RRSP for years and my spouse starts putting money in it for me?

Your RRSP plan then becomes a spousal RRSP. Your spouse can also do an RRSP transfer between registered plans, including from an RRSP to a RRIF.

Who has to use the T2205?

You and your spouse or common-law partner each have to fill out your own form if you received an amount from a spousal RRSP or RRIF and if your spouse or common-law partner put money in your RRSP the same year you received that amount or in the two years before that.

For example, Dave contributed $8,000 to Ann’s RRSP in 2005. In 2007, Ann made a $5,000 spousal RRSP withdrawal. In 2008, Ann received a T4RSP tax form, indicating the $5,000 withdrawal, the fact that it was a spousal contribution, as well as Dave’s SIN. Ann claimed the income tax withheld against her 2008 tax owing and Dave declared the amount received ($5,000 – tax) as taxable income in 2008.

What about deregistered RRSPs or RRIFs?

A registered plan becomes deregistered when you withdraw all the money in it or when the CRA judges that the plan does not meet the rules and deregisters it. In that case, you have to fill out form T2205 in the year the plan was deregistered.

Please consult the form for exceptions to the most common situations described above.

TurboTax has helped millions of Canadians file for Free! Try TurboTax Free with no income limits. For more info on TurboTax Free, click here.