Using a registered disability savings plan (RDSP) can help parents and other caregivers put money away for loved ones with disabilities.
Anyone can be the beneficiary of an RDSP if they:
- Are eligible to claim the Disability Tax Credit and have gotten approval from the Canada Revenue Agency (CRA)
- Have a valid social insurance number (SIN)
- Are a Canadian resident when the plan is opened
- Will be 59 or younger on December 31 of the year the plan is opened
The parent or caregiver can contribute up to $200,000 to the RDSP, with no annual contribution limit. Other people can also put money into the RDSP if they have written consent from the account holder. The federal government will match up to a certain amount of every deposit into the plan.
RDSP contributions are not tax deductible. People can contribute until:
- The beneficiary turns 59 years old
- Contributions to the plan reach $200,000
- The beneficiary no longer qualifies for the Disability Tax Credit
- The beneficiary no longer lives in Canada (for tax purposes)
- The beneficiary dies
Having an RDSP or withdrawing from it doesn't affect other federal government benefits or programs such as:
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Canadian Pension Plan (CPP)
- Goods and Services Tax Benefit (GST Benefit)
- Most provincial disability support programs (check with the Alberta government)
Start saving today! Call us at 1.877.378.8728 and ask us about our investment plans.
RDSPs are offered through Credential Asset Management Inc.