InfoCapsule 7: Plan registration
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 (CDSG) and Canada Disability Savings Bond (CDSB) 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
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.
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)
For a plan to be registered by the Canada Revenue Agency (CRA) the following three 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)
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”.
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”.
Note: When the contract status is “pending”, this means that the contract is not registered; therefore, no Canada Disability Saving Grant (CDSG) and Canada Disability Savings Bond (CDSB) will be paid.
Corrections (if applicable)
Issuers may need to take action in order to bring the contract status from “pending” to “registration confirmed” by consulting their Error file (RT 801) to identify which transaction(s) is in error, apply corrective measures and resubmit all three transactions of the contract registration package, at the same time, including the ones that were successfully processed.
No action can be taken on the issuer’s part other than relating the information to the holder and referring them to the CRA.
Note: The monthly Contract status file (RT 951) sent by the CDSP system should be consulted to confirm the status of each contract, as well as any updates to the contract status.
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