BMO Celebrates the One-Year Anniversary of Being the First Financial Institution in Canada to Offer the Registered Disability Savings Plan (RDSP)
TORONTO, December 17,
2009 – For those individuals that qualify, the 2009
contribution deadline to contribute to the Registered Disability
Savings Plan (RDSP) is December 31, 2009. That means individuals
have less than a month to make a contribution in order to be eligible
for the Canada Disability Savings Grant (CDSG) and other tax-efficient
benefits that come with contributing to a government registered
plan.
“The RDSP is
helping parents and others to ensure the long-term financial security
of children with a severe disability”, said Minister
of Finance Jim Flaherty. “Since the plan became available
a year ago, our Government has paid over $60 million in grants and
bonds to Canadians with disabilities and their families.”
“We applaud
the Government for establishing Canada as the first country to offer
a program of this kind,” said Linda Knight, Co-President
and COO, BMO Investments Inc., BMO Financial Group.
BMO was the first major Canadian financial institution to offer
the RDSP nearly a year ago, and we are very pleased to have
recently become the first to offer the RDSP to the broader
investment advisor
community. We are the market leader and continue to focus
on providing clarity and sound advice to Canadians on the RDSP,” Ms. Knight
added.
The RDSP encourages families and individuals to save for the
long-term security of persons with severe and prolonged
disabilities. It
is available to Canadians who are eligible for the Disability
Tax Credit,
and can provide “peace of mind” to parents and other
contributors that may put a plan in place for a beneficiary with
a disability.
In addition to the fact that contributions grow on a tax-deferred
basis, other compelling features of the plan are the government
benefits; a lifetime maximum of up to $70,000 per beneficiary
through Canada Disability Savings Grants (CDSG); and,
for lower-income families
and individuals, up to $20,000 per beneficiary through
Canada Disability Savings Bonds (CDSB).
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- When earnings are withdrawn as part of a disability assistance payment,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.
How to apply for a BMO RDSP
- Contact an
investment advisor.
- Call the BMO Investment Centre (BMO IC) at 1-800-665-7700. Bell
Relay Service: 1-800-855-0511.
- BMO IC provides service in both official languages plus Cantonese
and Mandarin.
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For
news media inquiries, please contact:
Toronto, 416-867-3996
Montreal, 514-877-1873
Vancouver, 604-665-7596