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.
- 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:
- 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.