RBC to offer registered disability savings plans
RBC teams up with Planned Lifetime Advocacy Network (PLAN)
to educate Canadians about RDSPs
TORONTO, February 9, 2009 — Starting February
16, 2009, RBC will offer Registered Disability Savings Plans
(RDSPs), allowing eligible Canadians to take advantage of
2008 Canada Disability Savings Grants (CDSGs) and Canada Disability
Savings Bonds (CDSBs).
"RDSPs are designed to help Canadians with disabilities
and their families ensure long-term financial security,"
said David Birkbeck, head, registered products strategy, RBC.
"Our role at RBC is to help Canadians understand how
they can benefit from the RDSP and we are encouraging clients
to take advantage of these new plans prior to the March 2
deadline for 2008 federal government contributions."
RBC has joined forces with Planned Lifetime Advocacy Network
(PLAN), a non-profit organization which led the advocacy for
the creation of the Registered Disability Savings Plan, to
help educate and offer advice to Canadians. As PLAN's preferred
national RDSP provider, RBC will work closely with PLAN to
assist Canadians with disabilities and their families.
"RBC has a longstanding commitment to helping Canadians
with disabilities and we are proud to have selected them for
their expertise and leadership," said Al Etmanski, president
& co-founder. "Over time, RDSPs will provide billions
of dollars to supplement income, enable home ownership and
enhance quality of life for as many as 500,000 Canadians with
disabilities. Our goal is to work together to reach as many
Canadians as possible."
The RDSP allows eligible Canadians to save and invest for
themselves or for a family member while deferring tax. Contributions
may be eligible for federal government matching grants (CDSG)
up to $3,500 annually and the plan may be eligible for government
bond amounts (CDSB) up to $1,000 annually. The money in an
RDSP can be used for any purpose, as long as it is for the
benefit of the plan's beneficiary. Beneficiaries must be a
resident of Canada, under age 60, have a Social Insurance
Number (SIN) and be eligible for the Disability Tax Credit
(DTC) as defined in the Income Tax Act (Canada).
In order to open an RDSP, Canadians must be:
- A person with a disability who is of the age of majority
and has the legal capacity to manage their finances
- The parent of a person with a disability who has not attained
the age of majority
- A guardian or other representative who is legally authorized
to act of behalf of a person with a disability.
Within Registered Disability Savings Plans, RBC clients will
have access to a wide variety of investment options including
RBC Funds, RBC GICs and RBC Savings Deposits. There will be
no annual administration or withdrawal fees. Clients will
also have the opportunity to make regular, pre-authorized
contributions through RDSP-Matic.
Canadians wishing to learn more, get advice or sign-up for
a Registered Disability Savings Plan can do so by calling
1-800-463-3863 to book an appointment with an RBC advisor.
For more information on Planned Lifetime Advocacy Network
(PLAN) please visit: www.plan.ca/homepage.php.
RBC is a recognized leader in supporting people with disabilities.
RBC believes that full inclusion is in the best interests
for our communities. We support programs that help create
employability, remove barriers to education and provide services
for people with disabilities. RBC has also supported the Special
Olympics Canada since 1968.
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Sarah Pendrith, RBC Wealth Management, 416-974-8820
Jackie Braden, Media Relations, 416-974-2124