InfoCapsule 7: Plan registration

On this page

• List of acronyms
• Preface
• Eligibility
• Submission
• Validation
• Corrections (if applicable)

Alternate format

A PDF version of the InfoCapsules for RDSP providers is available on the index page.

Preface

When opening a Registered Disability Savings Plan (RDSP), issuers should first ensure that the holder and the beneficiary of the plan meet the eligibility requirements before submitting the contract registration request.

Eligibility

To open an RDSP, a beneficiary must:

• be a resident in Canada
• be eligible for the Disability Tax Credit (DTC)
• have a valid Social Insurance Number (SIN)
• be 59 years old or less on December 31 of the calendar year in which the RDSP is opened (unless the plan is opened as a result of a transfer)

Submission

For a plan to be registered by the Canada Revenue Agency (CRA) the following 3 transactions must be sent together as a registration package and each must be successfully processed by the Canada Disability Savings Program (CDSP) system:

• contract information (101-01)
• beneficiary information (101-02)
• holder information (101-03)

Validation

Social Insurance Number

The CDSP system validates the SIN information of the beneficiary and the holder with the Social Insurance Register (SIR).

If the SIN information fails validation, the contract status will be set to “pending”.

Disability Tax Credit/ Residency

Once the SIN information passed SIR validation, the CDSP system will validate the beneficiary’s DTC eligibility and residency status with the CRA.

If the residency or DTC eligibility fails validation, the contract status will be set to “pending”.

Corrections (if applicable)

Social Insurance Number

Issuers may need to take action in order to bring the contract status from “pending” to “registration confirmed” by consulting their error file record type (RT) (RT 801) to identify which transaction(s) is in error, apply corrective measures and resubmit all 3 transactions of the contract registration package, at the same time, including the ones that were successfully processed.

Disability Tax Credit/ Residency

No action can be taken on the issuer’s part other than relating the information to the holder and referring them to the CRA.