RDSP the Money Flows (in)

in Canadian, Debts, Registered Disability Savings Plan

RDSP Update!

Whoopin’ it up! The money has appeared in my son’s RDSP account, after it’s overland route across two accounts, but unfortunately, as I suspected, I can only look at the balance and see that the money has actually shown up, but cannot do anything with it, without calling folks to ask them to do things for me.

I believe the presence of this money, should cause allowances and/or grants to appear from the government, somewhere along the way.

Funny, nobody has asked the really interesting question, and I challenge other Financial Bloggers to figure this one out. At least tell us how the money flows in the RDSP.

How do you take money out of an RDSP?

{ 3 comments }

  • Erick May 20, 2010, 2:24 PM Reply
  • Dennis Mullins May 20, 2010, 11:18 AM

    I will be interested to see what investments that your RDSP account will be allowed. It is my understanding that TD’s RDSP is not self directed and therefor stocks, ETFs , Etc. are not allowed.

    Regarding the withdrawals, any government grants/bonds must remain in the plan for at least 10 years before withdrawal or they will be clawed back when any withdrawal is made. Also if the value of government grants/bonds exceed your personal contributions then withdrawals are governed by a withdrawal formula which is based on your child’s age and life expectancy. If your contributions exceed the governments then you can make lump sum withdrawals, although the 10 year claw back still holds. A good resource is http://www.rdsp.com

    Reply
    • bigcajunman May 20, 2010, 12:06 PM

      So this account is with TD Waterhouse, not with TD (we fell into that trap with our RESP accounts, so I wasn’t falling for that one again). My understanding is that I should be able to buy whatever I want, but then again,

        I haven’t done it yet

      , so I cannot be positive that is the case yet. Thanks for the resource!

      Reply

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