Get Informed – RDSP: a Disability Tax Credit

In a person's lifetime the Canadian Government could contribute up to $70,000 to an eligible person's RDSP!A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit. Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.

The Canada disability savings grant, the Canada disability savings bond and disability tax credit provided by the Canadian Government allows for participants of the program to save even more.

How it Works

Canadian Savings Disability Grants match contributions to the RDSP account between 100-300%, depending on Family income, up to the age of 49.  i.e. if income is higher than the CSDG threshold amount $1,000 gets $1,000, if it is lower, $1,500 gets $3,500 in grants.

Canadian Savings Disability Bonds automatically get deposited to the RDSP account if the family income is less than the CSDB threshold amount, up to the age of 49.  This is to a maximum of $1,000/year and a lifetime maximum of $20,000.

CSDG & CSDB must remain in the account for 10 years to be vested to the beneficiary.
Withdrawals from the plan must start at 60 and the investment growth and the CSDG & CSDB are taxed to the beneficiary upon withdrawal.

Income from the RDSP does not affect income-tested federal government programs such as Old Age Security (OAS), Guaranteed Income Supplement (GIS) or Canada Pension Plan (CPP).
The RDSP is exempt as an asset for provincial programs like AISH, ODSP etc.  (except in Quebec, New Brunswick & PEI)

For more information refer to News & Resources.

What Do I Need To Apply?

CheckboardTo successfully apply for the RDSP, have the following ready:

  • Determine who the ‘Holder’ will be.
  • Have all of the items from the ‘Who Qualifies?’ section ready.
  • File your taxes (be approved for the Disability Tax Credit)
  • Open the RDSP and invest the money ( remember, like an RRSP, you will need to direct how the money will be invested, including Sharia Law)
  • Deposit money regularly into your RDSP
  • Watch your money grow!

 

Learn about qualifying for the RDSP – Click here!

Registered Disability Savings Plan | Planning for Your Future

Get Informed – RDSP: a Disability Tax Credit

In a person's lifetime the Canadian Government could contribute up to $70,000 to an eligible person's RDSP!A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit. Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59.

The Canada disability savings grant, the Canada disability savings bond and disability tax credit provided by the Canadian Government allows for participants of the program to save even more.

How it Works

Canadian Savings Disability Grants match contributions to the RDSP account between 100-300%, depending on Family income, up to the age of 49.  i.e. if income is higher than the CSDG threshold amount $1,000 gets $1,000, if it is lower, $1,500 gets $3,500 in grants.

Canadian Savings Disability Bonds automatically get deposited to the RDSP account if the family income is less than the CSDB threshold amount, up to the age of 49.  This is to a maximum of $1,000/year and a lifetime maximum of $20,000.

CSDG & CSDB must remain in the account for 10 years to be vested to the beneficiary.
Withdrawals from the plan must start at 60 and the investment growth and the CSDG & CSDB are taxed to the beneficiary upon withdrawal.

Income from the RDSP does not affect income-tested federal government programs such as Old Age Security (OAS), Guaranteed Income Supplement (GIS) or Canada Pension Plan (CPP).
The RDSP is exempt as an asset for provincial programs like AISH, ODSP etc.  (except in Quebec, New Brunswick & PEI)

For more information refer to News & Resources.

What Do I Need To Apply?

CheckboardTo successfully apply for the RDSP, have the following ready:

  • Determine who the ‘Holder’ will be.
  • Have all of the items from the ‘Who Qualifies?’ section ready.
  • File your taxes (be approved for the Disability Tax Credit)
  • Open the RDSP and invest the money ( remember, like an RRSP, you will need to direct how the money will be invested, including Sharia Law)
  • Deposit money regularly into your RDSP
  • Watch your money grow!

 

Learn about qualifying for the RDSP – Click here!