What is the primary factor preventing a spouse from immediately withdrawing funds from a spousal RRSP without significant tax consequences?

The primary factor preventing a spouse from immediately withdrawing funds from a spousal RRSP without significant tax consequences is the attribution rules. These rules are designed to prevent tax avoidance through the shifting of assets between spouses. When one spouse contributes to a spousal RRSP, the income generated within that RRSP is attributed back to the contributing spouse if the funds are withdrawn within a specific timeframe. This means that if the recipient spouse takes a distribution too soon after the contribution, the income may still be taxed in the hands of the contributor, thus resulting in a double taxation scenario.

The attribution rules specifically discourage immediate withdrawals by linking the taxation of the income earned within the plan back to the original contributor, thus maintaining the intent of retirement savings and fairness in tax treatment between spouses. As such, withdrawals made before a certain period could trigger immediate tax liabilities that would not apply if the funds were allowed to remain within the RRSP for a longer duration.

The other options, while relevant to financial planning and taxation, do not specifically address the reason for the immediate withdrawal limitation in spousal RRSPs.