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BMO Guardian to offer Registered Disability Savings Plan (RDSP) Designed to provide advisors with an important tool in planning for the financial security of Canadians with disabilities

TORONTO, November 25, 2009 – BMO Financial Group today announced it will be the first financial institution in Canada to offer the Registered Disability Savings Plan (RDSP) directly to investment advisors through BMO Guardian Funds.

“BMO was the first to offer the RDSP nearly a year ago, and we are very pleased to be the first major Canadian financial institution to offer the RDSP to the broader investment advisor community,” said Ross Kappele, Co-President, BMO Investments Inc. “The BMO Guardian RDSP gives advisors direct access to the program along with full sales and educational support, helping them to better and more holistically serve clients and families of individuals with a disability.”

Investors can now open a BMO Guardian RDSP directly through their investment advisor.
The full line-up of BMO Guardian Funds, including a wide range of investment solutions that are suitable for long-term investors, are available for purchase within the RDSP. In addition, contributions to an RDSP may qualify for payments from the Canada Disability Savings Grant (CDSG) program to a lifetime maximum of $70,000 per beneficiary. Lower-income families may qualify for payments from the Canada Disability Savings Bond (CDSB) program without having to make a contribution to an RDSP, up to a lifetime maximum of $20,000.

About the RDSP

  • BMO was the first major Canadian financial institution to offer RDSPs
  • Contributions are not tax deductible but grow on a tax-deferred basis;
  • Earnings generated on contributions are tax-exempt while in the plan;
  • When earnings are withdrawn as part of a disability assistance payment, they are taxable in the hands of the beneficiary (likely to be taxed at a lower rate);
  • The lifetime contribution limit is $200,000 per beneficiary. There is no annual contribution limit;
  • Only one beneficiary can be named per RDSP. A beneficiary can hold only one RDSP.
  • Contribution deadline to be eligible for the CDSG program is December 31, 2009.

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Internet: www.bmoguardian.com