📄 RDSP Bulletin No. 3R3

RDSP Bulletin No. 3R3 replaces the previous version (No. 3R2) and outlines key changes to the rules for Registered Disability Savings Plans (RDSPs) under subsection 146.4(1) of the Income Tax Act. It clarifies how issuing institutions should administer plans where a qualifying family member is involved and how retirement savings rollovers are treated.

👨‍👩‍👧 Qualifying Family Member Updates

The bulletin expands the definition of a qualifying family member to include a beneficiary’s brother or sister, in addition to parents, spouse, or common-law partner. This measure applies until the end of 2026.

  • A qualifying family member can enter into an RDSP arrangement if they meet eligibility conditions.
  • Conditions include: beneficiary over majority age, beneficiary not already the RDSP holder, and no other legally authorized entity acting on behalf of the beneficiary.

🔄 Retirement Savings Rollovers

The bulletin describes how specified retirement savings rollovers may be accepted by an RDSP and outlines the conditions for doing so:

  • Beneficiary must be DTC-eligible at the time of rollover (or within four years of losing eligibility).
  • Beneficiary must still be alive and resident in Canada.
  • RDSP holder must consent to the rollover.

📣 Issuer Responsibilities

When an RDSP is opened by a qualifying family member, issuers are required to notify the beneficiary promptly in writing. They must gather the beneficiary’s personal information to properly administer the plan.

🔁 Plan Holder Replacement and Disputes

If a beneficiary later wishes to become the RDSP holder, the issuer may need to confirm contractual competence and transition the plan holder role appropriately. In cases of disputes regarding the current holder’s right, the issuer must ensure that actions do not reduce the plan’s fair market value during the dispute.

🛠️ Specimen Plan Amendments

Issuers wishing to offer the qualifying family member option must amend their specimen plan text to reflect the updated definitions and procedures, including:

  • Defining qualifying family member provisions.
  • Conditions for family members to enter into RDSP arrangements.
  • Procedures for notifications, holder replacement, and handling disputes.

📍 Additional RDSP Resources

For broader RDSP administration guidance — including forms, guides, and related bulletins — see the CRA’s RDSP section for registered plans administrators.