Dear Community Partner,
The following is taken from a Reminder Notice in the Annual Statement of Grant Entitlement for 2018 that RDSP holders will receive. We are sharing this with you to help ensure that people with RDSPs are clear about the rules on taking money out of their Plans.
As 2019 is approaching some people will have had an RDSP for 10 years and may be thinking about taking money out of their Savings Plan.
It’s important to remember that the money the government deposits into an RDSP must remain in it for at least 10 years after the last government contribution was made to the Plan. If money is withdrawn before this time, all or part of the government contribution will have to be repaid to the government.
What this means is that if a person takes money out of their RDSP within 10 years of receiving the last government contribution they will be subject to one of the following repayment rules:
- Return $3 of government contributions for every $1 that is withdrawn from the RDSP, or
- Return all of the government contributions received in the last 10 years; whichever of these two amounts is less.
Please share this information with your networks. If you have any questions or concerns about this information please call Access RDSP at 604-872-1278 or 1-800-663-1278 and ask to speak to an RDSP advocate.
Sam Turcott, Program Director, Advocacy Access