- BMO encourages parents and others to make a contribution by
December 31 in order to receive 2009 federal grants
- First financial institution in Canada to offer the RDSP through the
award-winning BMO Investment Centre
- Recently expanded RDSP accessibility to Canadians by making the
product available through the broader investment advisor channel
TORONTO, Dec. 17 /CNW/ - 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
- Contributions are not tax deductible but grow on a tax-deferred
- 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
- BMO IC provides service in both official languages plus Cantonese and
SOURCE BMO BANK OF MONTREAL
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