Recent RDSP changes

As you might not noticed, in the 2012 federal budget, our government has introduced a few changes to the RDSP. I think all these changes have made it even easier to build up the savings for people with disability.

Image linked from CBC.ca

Other family members becoming temporary RDSP holders

“The 2012 federal budget introduced a measure to let some family members become temporary RDSP holders for an adult who might not be able to enter into a contract themselves. Under the old rules, a plan holder had to be the beneficiary or the beneficiary’s legal representative. “ Quoted from Cbc.ca

Tax-free transfer from RESP to RDSP

“The budget changed the rules to allow the tax-free transfer of RESP investment income to an RDSP (as of 2013) if the plans share a common beneficiary. Another budget measure introduced proportional repayment of Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs) paid into an RDSP in the preceding 10 years when money is withdrawn from an RDSP. Under the new rules, $3 of the grants or bonds paid in the previous 10 years must be repaid for every $1 withdrawn. The old rules required all grants and bonds paid in the prior decade to be repaid.” Quoted from Cbc.ca

10 years carry forward unused grant and bond

“Ottawa also allows a 10-year carry forward of unused grant and bond entitlements. This will allow people to claim unused grant and bond money going back to 2008, even if the RDSP was set up in later years.” Quoted from Cbc.ca

Tax-free rollover of RRSP, RRIF or company pension to RDSP

“Another change allows parents or grandparents of a disabled child or grandchild to arrange for a tax-free rollover of RRSP, RRIF or company pension plan money to an RDSP when the parent or grandparent dies.”  Quoted from Cbc.ca

Full article from CBC could be viewed at:  http://www.cbc.ca/news/business/taxseason/story/2011/12/20/f-rrsp-rdsp-disabilities.html

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