BMO Financial Group

BMO Financial Group

December 07, 2010 09:30 ET

BMO Supports Improvements to RDSPs

OTTAWA, ONTARIO--(Marketwire - Dec. 7, 2010) - BMO Financial Group today reiterated its support for changes to the rules governing the Registered Disability Savings Plan (RDSP), announced in the 2010 Federal Budget and now under consideration by Parliament as they examine Bill C-47. The Head of BMO's Retirement Institute, Tina Di Vito, and David Sharone, Product Manager, Registered Plans, BMO Investments Inc., were giving testimony at the Senate National Finance Committee today in Ottawa.

"In the 2007 Budget, Minister Flaherty took the important step of introducing the RDSP, and all Canadians should be very proud of this fantastic initiative where Canada is leading the world," said Ms. Di Vito. "We strongly support Minister Flaherty's efforts to make a great program even better."

One change under consideration allows balances held within RRSPs and RRIFs to roll over, tax-free, into an RDSP. "Allowing individuals to bequeath their RRSP or RRIF balances to an RDSP on a tax-deferred basis offers one more way to help people with disabilities live more independent lives with financial security," noted Ms. Di Vito.

Also proposed is a change to the Canada Disability Savings Act that would allow for the opportunity to carry forward unused grants. "Again, we at BMO are in support of this change. The carry forward rules are an excellent provision that will help those who open an RDSP in their later years," said Ms. Di Vito.

"For any Canadians who are interested in an RDSP, we encourage you to come into one of our over 900 branches across the country, or call the BMO Investment Centre at 1-800-665-7700, to have a conversation about the available options," said Mr. Sharone. "When it comes to RDSPs, and any other financial product or service, BMO Financial Group is there for its customers: to listen, understand and guide them – to make money make sense."

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