Spousal loan for RRSP contribution - IRS considerations?

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Spousal loan for RRSP contribution - IRS considerations?

Post by Sylvia » Fri Mar 30, 2018 2:50 pm

Hoping you can all help me think through a solution.

Husband is dual US/Canadian citizen, I am Cdn and we reside in Canada (permanently).

We have some GICs maturing in the next year (originating from hubby's income) and trying to decide where to invest the money. His RRSP and my TFSA are maxed out from his income (TFSA funds were spousal gift to me). My income goes towards our daughter's RESP and investments in an unregistered acct in my name only, but I have some room in my RRSP.

What about a spousal loan to me of the GIC funds to put into my RRSP (and possibly the unregistered investment acct)? Of course, I would pay him the 1% rate as per the CRA, but my question is whether the IRS would consider this loan as a real loan (and he must report the income), or as a gift to a foreign spouse (I will make sure to stay below the annual limit).

And just to make sure my head is screwed on right -- there is no attribution back to him concerning income from spousal gifts according to the IRS, yes?

He files as Head of Household (daughter is USC).

Thanks for the thoughts!

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