News Releases

TORONTO, ONTARIO--(Marketwire - Oct. 31, 2011) - BMO Financial Group today encouraged Canadians to learn more about the Registered Disability Savings Plan (RDSP).

"The RDSP is a fantastic savings vehicle, introduced by Finance Minister Jim Flaherty, which helps families manage the financial costs associated with having, or caring for someone, with a severe disability," said Mark Stewart, Director, Product Development & Management, BMO Investments Inc. "Yet, our research shows that that only one in ten Canadians with a disability, or those with a family member with a disability, are knowledgeable about the Registered Disability Savings Plan (RDSP) and its benefits, with nearly half having never heard of it."

What media are saying about the RDSP

"Bank of Montreal, a leader in the field from the beginning… now controls about 50 per cent of the market…The message needs to get out. The RDSP is a great program. Spread the word. Please." – Financial Post, October 26, 2011

"It is a wonderful program… The federal government, banks, non-profit groups and health-care workers should ensure that each and every disabled person who would benefit knows about this superb program." – The Globe and Mail editorial, October 31, 2011

About the RDSP

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.

• 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• When earnings are withdrawn as part of a disability assistance payment, they are taxable in the hands of the beneficiary (likely to be taxed at a lower rate)
• Only one beneficiary can be named per RDSP. A beneficiary can hold only one RDSP