knowledge topics
RDSP Withdrawals
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM 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)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rdsp-reei/sdsp-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rdsp-reei/pmnts/typsmd-eng.html#spfdyr
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rdsp-reei/pmnts/rls-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rdsp-reei/pmnts/typsmd-eng.html#assistanceholdback
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rdsp-reei/pmnts/typsmd-eng.html
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