CIBC report highlights how RDSPs can help ensure financial security for
    Canadians with disabilities and their familiesTORONTO, Feb. 24 /CNW/ - CIBC (CM: TSX;NYSE) is now offering Registered
Disability Savings Plans or 'RDSPs' to eligible clients. CIBC has also issued
a report from Managing Director of Tax and Estate Planning, Jamie Golombek,
outlining RDSP strategies for disabled Canadians and their families.
    The RDSP is largely modeled after the Registered Education Savings Plan
(RESP) with both grant and bond incentive programs. It is a new registered
savings plan that allows Canadian residents eligible for the Disability Tax
Credit, and in certain cases their parents and other eligible contributors, to
invest up to $200,000 in a tax-deferred plan. As with RESPs, earnings and
growth on all RDSP contributions accrue tax-deferred, contributions are not
tax deductible and there are no annual contribution limits, only a lifetime
limit.
    "The RDSP is an effective way for clients with disabilities and their
families to save for the future and make the most of government grants and
bonds, all the while deferring tax on the plan's earnings and growth," says
Golombek.
    Canada Disability Savings Grants (CDSG) and Canada Disability Savings
Bonds (CDSB) were designed to augment assets held within the RDSP. The
Government of Canada will contribute funds, in the form of a CDSG, to a
maximum of $3,500 depending on the net income of the beneficiary's family. The
Government of Canada will also contribute up to $1,000 annually in CDSBs
depending on the net income of the beneficiary's family.
    Golombek discusses that prior to the arrival of the RDSP, trusts were the
main vehicle used when planning for persons with disabilities. Fully
discretionary trusts have been commonly used to set aside assets for a
disabled beneficiary, including an inheritance, but still preserve the
beneficiary's right to collect certain government benefits and entitlements.
Putting assets into an RDSP, instead of giving them to the beneficiary
outright, will also protect against a beneficiary losing valuable disability
benefits in most provinces, but RDSPs have the added benefits of saving money
in a tax-deferred manner, while collecting CDSGs and CDSBs.
    CIBC's RDSP product line-up includes a broad selection of CIBC Mutual
Funds, including savings, income and growth funds, and CIBC Managed Portfolio
Services. More information on the CIBC Registered Disability Savings Plan
visit www.cibc.com or call 1-877-433-1901.

    CIBC is a leading North American financial institution with nearly 11
million personal banking and business clients. CIBC offers a full range of
products and services through its comprehensive electronic banking network,
branches and offices across Canada, in the United States and around the world.
You can find other news releases and information about CIBC in our Press
Centre on our corporate website at www.cibc.com.