knowledge topics

RDSP Withdrawals

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals

Explain how withdrawals from and income earned in a Registered Disability Savings Plan affect government benefit programs.
- Federal government income tested benefit programs
- Provincial government income tested benefit programs
Define a Specified Disability Savings Plan (SDSP).¹
Define a specified year.²
Identify when a Registered Disability Savings Plan becomes a Specified Disability Savings Plan.¹
Explain the impact of changing a Registered Disability Savings Plan to a Specified Disability Savings Plan.¹
- Entitlement to future Canada Disability Savings Grants and Canada Disability Savings Bonds
- Entitlement to carry forward of Canada Disability Savings Grant and Canada Disability Savings Bond
- Maximum withdrawals permitted
Define a Primarily Government Assisted Plan (PGAP).³
Define the Assistance Holdback Amount.⁴
Define the types of payments that may be made from a Registered Disability Savings Plan.⁵
- Disability Assistance Payments, including Lifetime Disability Assistance Payments
- Direct transfer to another Registered Disability Savings Plan for which the beneficiaries are the same
- Repayments under the Canada Disability Savings Act
Identify the repayment that will be required if a Disability Assistance Payment is taken.⁵
Identify the requirements for Lifetime Disability Assistance Payments to be made.⁵
Identify the Lifetime Disability Assistance Payment for a Registered Disability Savings Plan.
- Maximum amount
- Non-taxable amount
- Taxable amount
Explain the impact resulting from the breakdown of a Registered Disability Savings Plan beneficiary’s relationship.
- On the contributions made to the plan
- On Canada Disability Savings Grants contributed to the plan
- On Canada Disability Savings Bonds contributed to the plan
- On investment earnings within the plan
- On taxation
- On the plan’s status
Explain how each of the factors may impact the suitability of withdrawing from a Registered Disability Savings Plan for personal use, such as:
- Tax impact
- Loss of Registered Disability Savings Plan contribution room
- Loss of asset growth within Registered Disability Savings Plan
- Impact on government benefits
Evaluate how each of the factors may impact the suitability of withdrawing from a Registered Disability Savings Plan.

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of
Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Compare

To note the similarities and differences between two or more things
Estimate

To determine an approximate value for
Calculate

To find the value using mathematics
Convert

To change from one form or purpose to another
Evaluate

To reach a conclusion or make a judgement through careful study
Interpret

To give the meaning of / to construe or understand / to translate orally

REFERENCES

previous / RDSP Attributes

next / Death of an RDSP Beneficiary

Financial Planning Body of Knowledge

knowledge topics

RDSP Withdrawals

KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals

Glossary of Verbs (mouse over to see definition)

RELEVANT CASE STUDIES

REFERENCES

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and QAFP^TM Professionals