2010 Tax Changes that May Affect You

Rollover of RRSP Proceeds to a Registered Disability Savings Plan

Budget 2010 proposes to extend the existing RRSP rollover rules to allow a rollover of a deceased individual’s RRSP proceeds to the Registered Disability Savings Plan of a financially dependent infirm child or grandchild.

The amount of RRSP proceeds rolled over into a Registered Disability Savings Plan must not exceed the beneficiary's available RDSP contribution room.  The RDSP beneficiary or his or her legal representative will be required to make an election in prescribed form to transfer the RRSP proceeds to the RDSP on a rollover basis.  The election would be made at the time of the RDSP contribution and filed with both the Canada Revenue Agency and Human Resources and Skills Development Canada by the RDSP issuer.
 
These measures will be effective for deaths occurring on or after March 4, 2010.
 

Provincial Payments into Registered Education Savings Plans and Registered Disability Savings Plans

Budget 2010 proposes to clarify that all payments made to an RESP or RDSP through a program funded, directly or indirectly, by a province or administered by a province will be treated the same way as federal grants and bonds and will therefore, not themselves attract or reduce federal grants and bonds.
 
In the case of programs that are or are not administered by a province, this measure will apply to payments made after 2008 as well.
 

U.S. Social Security Benefits

Canadian residents who receive U.S. Social Security benefits after January 1, 2010 will have to include 50% in income (formerly 85%).