I write specific articles yearly as an update on previous reports. Not many things change in my financial world. Unfortunately, my ability to deposit in my son’s RDSP is one of those.
Some of my yearly rants:
- Yearly CPP and EI Maximum updates
- RDSP Grant levels for my son (i.e. Grant entitlements)
- My somewhat irregular Moneytalk posts
- etc.,
RDSP Deposit for a TD Direct Investing Account
For those unsure, let me recap. I cannot make a deposit directly to my son’s RDSP (a TD Direct Investing account). I must first put money in my Direct Investing trading account. Once the money is in the trading account, I must call Direct Investing phone service to transfer the funds to my son’s RDSP.
Over the years, I have had many reasons given. I received an update from someone who has an RDSP where my son is the beneficiary, who can direct deposit to that account. I was confused by this policy, so I continued investigating why I could not make the deposit yearly to Direct Investing.
This year’s response follows:
Only the account holders can transfer cash to the RDSP account.
This would be the same for any registered plan account.
Due to online privacy and security concerns, trade and account related inquiries are handled by our investment representatives. By phone, we can securely access your profile to assist accordingly. If you feel that the representative has not adequately addressed your concern, you may ask to speak with a Manager.
Response from TD Direct Investing
This statement lines up with what I have found out. It does not make me very happy, as I think I can quickly deposit into any RESP directly. I did that for my daughters and am doing it for my son as well.
New Tactic?
Given my son now has a TD savings account, I will test the validity of this explanation. I will attempt to set up a transfer to his RDSP. I will also need to file his taxes for next year, which is another story.
Workaround for RDSP issue
Addendum, I forgot that two smart folks, Bobby Vu and Steven Reeves, last year, commented that I could try “Paying it as a Bill.” The plan would entail setting up a bill payment to TD Direct Investing with my son’s RDSP account number. I have set this up, and it works. I can deposit it directly to my son’s RDSP.
Previous Discussions on Topic
- RDSP and TD Aggravations pretty much the day after I opened the account, I noticed the deposit issue.
- Not a very big step taken, in fact, none at all, really, RDSP with TD Direct Investing a Step in the Right Direction
- RDSP update and a TD Explanation in 2013 TD claimed they would “fix” the deposit issue. As you have read, they didn’t.
Related RDSP Pages
- The RDSP Page is the Overview of all articles I have written about the RDSP (including DTC and other areas).
- RDSP : Laying the Ground Work (first things first)
What needs to be done BEFORE you can apply for a Registered Disability Savings Plan? A major aspect of this is the Disability Tax Credit (DTC). Make sure you click on this page to get started. - RDSP : Working with The Account
Now that you have succeeded in getting your Disability Tax Credit (DTC) you need to open an RDSP account with a bank, but how is that done? It is not as easy as you might think. This page outlines many issues that have arisen for my family working with an RDSP account. - Disability Tax Credit Related Topics
Thanks to my RDSP and DTC work I then had to learn a great deal about the tax implications of having a disabled child. - Autism Specific Articles
Being the proud Father of a child on the Autism Spectrum, I also ended up writing a great deal about Autism specific things as well.
- RDSP : Laying the Ground Work (first things first)
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