RRSP Contribution Claim

[QTheNukes]

Okay here is the deal; I am 24 and wife is 23

My income for the year will be $68,000 pension contribution is 8% I think leaving me with 8% RRSP room? Next year I will be around $80,000.

My wife is $40,000 this year and $60,000 next, pension is 12% - I think that is what teachers are?

I have about $5000 in RRSP's unclaimed, and $15,000 room that I will be using up before tax season.

Wife has about $5000 in RRSP's unclaimed, and $5,000 room that I can fill up this year as well.

My wife is only going to be working for a max of 6 more years, so her pension will be at best 10 years and really nothing to speak of I guess. Should I be using my contribution room to make a spousal RRSP as I already have a decent pension plan?

Any help or recommendations are welcome. I am not completely clear on what to do mostly because we both have pension plans.

[jersey]

Open up a spousal RRSP because when you do plan to take this money out it will be taxed at your wife's tax bracket, which would be the lowest rate as she won't have an income. You mentioned undeducted contributions. Make sure you minus the undeducted contributions from your current RRSP limit to get your correct years limit. So if your wife has $5000 unclamied and only $5000 as her 2008 limit, she's done for this year because you don't want to go over your limit. Possible penalties and filling out a T1-OVP aren't fun.

[QTheNukes]

Thanks for the reply!