There is a spousal liability rule with marital RRSPs that applies if you withdraw within three years of your spouse contributing. This may result in the withdrawal being returned to the donor.
If you combine an RRSP and a spouse's RRSP, whether you like it or not, the new account must be the spouse's RRSP. As a result, you will transfer the RRSP to the existing spouse's RRSP.
There is no tax difference between an RRSP and a spouse's RRSP on withdrawals, except for the attribution rules mentioned above.
Even if you separate or divorce, your spouse's RRSP cannot be converted to a personal RRSP.
As a result, Steve, your wife can combine her RRSP and her spouse's RRSP by converting both to the spouse's RRIF. I would be inclined to do this.
Consolidating LIRAs with other registered accounts
Locked-in RRSPs have different withdrawal and consolidation rules than regular and spousal RRSPs. Lockout provisions within your spouse's locked-in retirement account (LIRA) are designed to prevent large withdrawals. These funds would come from the pension scheme he was under. Pensions are managed differently than personal retirement savings, such as locked-in accounts with higher withdrawals and lower withdrawals.
In some states, an account holder can unlock their locked account if the balance is below a certain limit. This might work for your wife, Steve, as you said the account is small. Some states also allow a one-time account opening when you convert a LIRA to a living income fund (LIF), which is the RRIF equivalent of a LIRA.
As a result, Steve, your wife may be able to have some or all of her LIRA account transferred to the same RRIF as her RRSP and spousal RRSP. If not, you will have to settle for a RRIF and a LIF.
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