Step 5 - Registered Disability Savings Plan

FAQs

Is the financial institution convenient for me?

• Is it easy to get to?
• Is it near transit?
• Is it accessible?
• What are the opening hours?

Are there fees?

Some financial institutions do not charge fees and others might. Ask if there is an administration fee, set-up fee, or management fee. You may be willing to pay a fee, but if not, another financial institution might be better. Brokerages often offer lower fees on their investment options.

What if I want to move my RDSP to another financial institution?

You are allowed to move your RDSP from one financial institution to another, no matter what the reason. But you might have to pay to do this. The fees tend to range from $25 to $50.

What is the process for deposits and getting my government contributions?

You want a financial institution that takes direct deposits into your RDSP. This is especially important if you are also getting disability benefits that go into your personal (savings or checking) account. Money going into your personal account can be counted as income and can be clawed back by government. But money that goes directly into your RDSP is not income and cannot be clawed back.

What are the rules around who manages the RDSP?

You may want someone to help you to manage your RDSP. This is called having a ‘joint holder’. Some financial institutions may allow for this, and some may not.

If anyone but you are to be ‘holder’ of your RDSP, they must be your legal representative. There are three types of legal representatives:

• You can appoint someone to manage your financial affairs with a Power of Attorney.
• In B.C., you can appoint a Representative with a Representation Agreement.
• An adult guardian may be appointed, usually by a court.

The rules around ‘holdership’ of your RDSP can be complicated. Learn more about Choosing Your Holder - RDSP at the Plan Institute’s website and the Government of Canada RDSP holder information site.

What are my choices for investing the money in my RDSP?

Investing your money well means that your money will grow. Some financial institutions will have a set investment plan that you must follow. Others will allow you to choose a plan.

There are usually advisors at financial institutions. They can help you decide how to best invest your money, depending on how old you are, how much money you have, and how quickly you want to use it. Choose someone who gives you options for investment and lots of room to ask questions and talk through your choices.

What type of withdrawals from the RDSP will the financial institution allow?

Once you reach a certain age, financial institutions have to allow you to make regular withdrawals based on a government formula. However, you may want to take a large amount out -- to go on a trip, for instance, or put a down payment on a house. Not all financial institutions will allow you to do this. You may wish to look for one that does allow large withdrawals.