BMO Celebrates the One-Year Anniversary of Being the First Financial
Institution in Canada to Offer the Registered Disability Savings Plan (RDSP)
- 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
"The RDSP is helping parents and others to ensure the long-term financial security of children with a severe disability", said Minister of Finance
"We applaud the Government for establishing
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,"
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
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on a tax-deferred basis; - Earnings generated on contributions are tax-exempt while in the plan; - When earnings are withdrawn as part of a disability assistance payment, they are taxable in the hands of the beneficiary (likely to be taxed at a lower rate); - The lifetime contribution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.
For further information: For all news media enquiries please contact: Kasia Lech, Toronto, [email protected], (416) 867-3996; Ronald Monet, Montréal, [email protected], (514) 877-1873; Laurie Grant, Vancouver, [email protected], (604) 665-7596
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