Registered Disability Savings Plans (RDSP) Budget 2011 Provisions
Disclaimer: RDSP issuers
The information contained on this page is technical in nature and is intended for Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant (grant) and Canada Disability Savings Bond (bond) issuers. For general information, visit the RDSP section.
Consult this page frequently for newer versions. The following laws and regulations take precedence over information contained in InfoCapsules in the event of discrepancies:
- Income Tax Act
- Canada Disability Savings Act
- Canada Disability Savings Regulations
Official Title: Registered Disability Savings Plans (RDSP) Budget 2011 Provisions
Information Bulletin
- Number:
- CDSP/ PCEI -2011/12-003A-063
- Date:
- July 18th, 2011
- Subjet:
- Notice #063 - Registered Disability Savings Plans (RDSP) Budget 2011 Provisions
Purpose
The purpose of this Information Bulletin is to provide Promoters and Trustees with an overview of Budget 2011 Provisions that affect the CDSP.
Coming Into Force
On June 26, 2011, Bill C-3 (An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011), which was tabled in Parliament on June 14, 2011, received Royal Assent. The Bill amends the Income Tax Act, the Canada Disability Savings Act, and the Canada Disability Savings Regulations to allow increased flexibility for beneficiaries with shortened life expectancies to access their savings.
These legislative and regulatory modifications allow for annual RDSP withdrawals of up to $10,000 in taxable plan savings, as well as a pro-rated amount of plan contributions, in respect of a beneficiary with a life expectancy of five years or less, without requiring the repayment of Canada Disability Savings Grants and Bonds paid into the plan in the preceding 10 years.
Please refer to the second document to view the Questions & Answers that were prepared to help explain the provisions.
Contact Us
Questions on this Information Bulletin should be directed to the Canada Disability Savings Program by e-mail at rdsp-reei@hrsdc-rhdcc.gc.ca or by calling 1-866-204-0357.