Impact of proposed changes will be small on federal coffers, but the benefits will be huge
TORONTO, March 5 /CNW/ - BMO Financial Group, the first bank to offer the Registered Disability Savings Plan (RDSP) and the RDSP market leader, praised Minister Flaherty for continuing to make enhancements to the RDSP.
In the March issue of Policy Options magazine (http://www.irpp.org/po/), which was published this past Monday, Tina Di Vito, Director, Retirement Strategies, BMO Financial Group, stated:
"We believe that balances in RRSPs or RRIFs should be allowed to roll
over tax-free into a registered disability savings plan (RDSP). The
government took an important step when it created the RDSP in 2008,
and we applaud them for it. Canadians with disabilities can face
extraordinary expenses and may be limited in their ability to earn
enough to support themselves. Allowing individuals to bequeath their
RRSP or RRIF balances to an RDSP would offer one more way to help
people with disabilities live more independent lives."
"Budget 2010's proposal to allow a deceased individual's RRSP or RRIF proceeds to be transferred, on a tax-free basis, to the RDSP is a fantastic measure that will benefit people with disabilities and give their parents and grandparents peace of mind," said Ms. Di Vito. "The impact on federal coffers will be small, but the benefit will be huge. This will allow more people with disabilities to get the care they need. With the RDSP, Canada is leading the world in showing how smart policy can help provide financial security and independence for people with disabilities."
SOURCE BMO BANK OF MONTREAL
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