What is a false statement regarding Joe's contributions to the RRSPs?

The statement that Joe's contributions do not affect their individual limits is false because contributions made to a Registered Retirement Savings Plan (RRSP) can indeed have implications for the contribution limits of both individuals involved in a spousal RRSP arrangement. When Joe contributes to Jane's RRSP, it is considered a spousal contribution and does impact their respective contribution limits because the contribution to Jane's RRSP is counted against Joe's available contribution room.

It's important to note that each individual has their own RRSP contribution limit based on income and other factors. However, when a spouse contributes to their partner's RRSP, it does not grant them additional contribution room; instead, it uses the contributing spouse's available RRSP limit. Therefore, Joe's contributions directly affect how much he can contribute to his own RRSP.

In contrast, the other statements remain accurate because Joe's contribution to Jane's RRSP indeed impacts her contribution limit, he contributed a total of $10,000 to his RRSPs, and while Jane and Joe may have the same initial contribution limit due to their income, this limit could be affected by individual factors such as prior contributions, but the supervening risk lies primarily with Joe's contributions to Jane's RRSP.