Amid the media hype and public outcry vis-à-vis the Nation’s 2012 Annual Budget, little attention is being paid to changes to its Economic Action Plan 2012, particularly RDSPs (Registered Disability Savings Plan), perhaps in part because these changes are beneficial to Canadians with long-term disabilities.
In 2011, the RDSP was reviewed—consistent with intentions set forth in the 2011 Budget—and based on feedback received the Economic Action Plan 2012 is making the following changes and enhancements to improve the RDSP:
- Make it easier and more flexible to make small withdrawals from RDSP savings, by increasing the annual maximum withdrawal limit.
- For parents of children with disabilities, increase the flexibility of transfers from a Registered Education Savings Plans (RESPs) to an RDSP.
- For RDSP beneficiaries who cease to qualify for the Disability Tax Credit, extend the period that their plans may remain open.
- Improve the administration of the RDSP for financial institutions and beneficiaries by amending certain RDSP administrative rules.
On April 12, 2012, in Ottawa, ON, by Jason Hall