Registered Disability Savings Plans (RDSP)

Registered Disability Savings Plan (RDSP) -

‍RDSP’s were established to help parents and others save for the long-term financial security of a disabled person. The only requirement is that the individual must qualify for the Disability Tax Credit.

The beneficiary of an RDSP can continue to receive federal and provincial disability benefits.

- Theis the person with the disability who will receive the money in the future. If you receive the Disability Tax Credit you qualify.

- The plan holder is the person who opens and manages the RDSP. The beneficiary can also be the plan holder.

- There is no annual limit on contributions but the lifetime contribution limit for a beneficiary is $200,000.

- Contributions can be made to the plan until the beneficiary turns 59.

- Contributions are not tax deductible, but your savings grow tax free. There is no tax on the investment earnings, as long as they stay in the plan.

- Until December 31st of the year the beneficiary turns age 49, the beneficiary is eligible for government contributions to the RDSP under the:

                                           Canada Disability Savings Grant, and

                                           Canada Disability Savings Bond.

- Grant amounts depend on total family income but could be as high as 300% on the first $500 and 200% on the next $1,000

-RDSP savings can be held independing on where the plan is opened.

- Beneficiary must start taking regular (DAP) payments from the plan by age 60.

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